WestRock to acquire KapStone Paper

By Sophie Chapman
The US packaging firm, WestRock, has announced that it will be purchasing its rival, KapStone Paper and Packaging Corp. The deal has been valued at US...

The US packaging firm, WestRock, has announced that it will be purchasing its rival, KapStone Paper and Packaging Corp.

The deal has been valued at US$4.9bn, with WestRock paying approximately $3.5bn for the firm.

KapStone has a net debt of about $1.36bn, which would have been included in the deal.

WestRock offered shareholders a cash sum of $35 per share, or 0.4981 in WestRock shares.

SEE ALSO:

Subsequent to the offer, WestRock saw their shares plummet 2.8% to $68.31, with KapStone’s rising by 30% to $34.48.

“This is one of the last opportunities to consolidate in an industry that’s already becoming very well-structured,” stated Steven Chercover, Analyst at D.A. Davidson & Co, according to Reuters.

WestRock is considered to be the second largest packaging firm, following International Paper.

The firm acquired Multi Packaging Solutions International Ltd in 2017, and focused solely on it’s paper and packaging division, dissolving the company’s other branches in soap dispenser and perfume sprayers.

Share

Featured Articles

Microsoft’s Çağlayan Arkan explores the supply chain

Çağlayan Arkan, Microsoft’s VP Global Strategy & Sales Lead for Manufacturing & Supply Chain, gives his take on digital factories and ‘the art of possible’

Elisabeth Brinton on the Microsoft Cloud for Sustainability

Microsoft’s Elisabeth Brinton discusses the Microsoft Cloud for Sustainability programme & how manufacturers are being supported by their new technology

Aiimi’s Head of Solution Engineering Matt Eustace on risks

Aiimi utilises AI to provide businesses insights that eliminate risks ‒ including how to manage sanctioned individuals in your supply chain

5 minutes with Nicolai Peitersen, co-founder of Wikifactory

Procurement & Supply Chain

Three steps to building a resilient enterprise ecosystem

Procurement & Supply Chain

Chocolate manufacturer Venchi on sustainable packaging

Procurement & Supply Chain