US packaging manufacturer WestRock Company has entered into agreements to acquire nearly all the assets of corrugated solution manufacturers Island Container and Combined Container Industries.
Under the acquisition agreement, the assets to be acquired comprise a corrugator and corrugated converting operations located in Wheatley Heights, New York, along with specific fulfilment assets located in Saddle Brook, New Jersey, US.
WestRock will pay a total cash consideration, representing an EBITDA multiple of less than 4.5 times on a post-synergy basis.
WestRock chief executive officer Steve Voorhees said: “Island Container and Combined Container have longstanding relationships with customers in cosmetic, pharmaceutical and food markets in the Northeastern US, and we look forward to continuing these relationships.
“This acquisition will enable us to integrate more than 80,000t of containerboard into our corrugated packaging business.”
The completion of the transaction will be subject to customary closing conditions.
Island Container and Combined Container cater to various industries including cosmetics, pharmaceuticals and food industries in the north eastern US, reported Richmond.com.
Earlier this month, WestRock acquired five corrugated converting facilities located in Ohio, Pennsylvania and Louisiana.
WestRock reportedly provides packaging solutions from more than 300 operating and business locations across North America, South America, Europe and Asia.