US-based packaging firm WestRock Company has entered a definitive agreement to acquire Multi Packaging Solutions International (MPS) for an enterprise value of $2.28bn.
The deal's value includes all of MPS's outstanding shares for $18.00 per share in cash and the assumption of an estimated $873m in net debt.
Subject to a vote by MPS’s shareholders, necessary regulatory approvals and other customary closing conditions, the deal is expected to be completed by the third quarter of the current fiscal year.
WestRock Company CEO Steve Voorhees said: “Through this transaction, we will add a leader in the value-added packaging sector that strengthens our differentiated portfolio of paper and packaging solutions. Led by their talented management team, MPS shares our commitment to provide our customers with differentiated packaging solutions that help them win in the marketplace.
“The combination of WestRock and MPS creates opportunities to drive margin expansion and enhanced financial returns through a combination of increased integration and identified synergies.
“Overall, this is a highly strategic transaction consistent with our balanced capital allocation strategy that we expect will generate compelling growth and returns. We have the right team in place with deep integration experience to fully realise this opportunity.”
Established in 2005, MPS currently provides print-based specialty packaging solutions, such as folding cartons, inserts, labels, and rigid packaging, for the consumer and healthcare sectors.
The company also has a customer-base in 59 locations across North America, Europe and Asia.