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

India’s smart manufacturing electric vehicle future

Indian IT service Panache Digilife has announced a manufacturing and supply chain agreement with electric vehicle manufacturer Revamp Moto

Manufacturing a legacy of safety, sustainability, and skill

Michael Vale, Group President for 3M’s safety & industrial business, explores diversity & environmental stewardship in manufacturing

5 minutes with: Simon Michie, Pulsant CTO

Simon Michie, CTO at Pulsant, explains why edge computing will transform manufacturing operations, but success will depend on having partnerships in place

Microsoft’s Çağlayan Arkan explores the supply chain

Procurement & Supply Chain

Elisabeth Brinton on the Microsoft Cloud for Sustainability

Technology

Aiimi’s Head of Solution Engineering Matt Eustace on risks

AI & Automation