Smurfit Kappa, WestRock Sign Business Combination Agreement Following the announcement of a possible business com- bination earlier this month, the boards of Smurfit Kappa, a FTSE 100 company, and WestRock, an S&P 500 compa- ny, have announced the signing of a definitive transaction agreement to create Smurfit WestRock, a global packag- ing company. The Boards of Smurfit Kappa and WestRock see “com- pelling strategic, commercial and financial rationale” for combining Smurfit Kappa and WestRock’s complementa- ry paper-based packaging companies which will enhance Smurfit Kappa and WestRock’s existing offerings. Smurfit WestRock will have geographic and product diversity with a culturally aligned customer focus and en- hanced capabilities to serve customers globally. Together, Smurfit Kappa and WestRock generated com- bined last twelve months’ adjusted annual revenue of ap- proximately $34 billion as of 30 June 2023, which would make Smurfit WestRock the largest listed global packag- ing partner by revenue. The transaction will involve the creation of a new hold- ing company for the combined Smurfit WestRock. Smurfit WestRock will be incorporated and domiciled in Ireland with global headquarters in Dublin, Ireland and its North and South American operations will be headquartered in
Atlanta, Georgia. The Combination is expected to close in the second quarter of 2024. “This incredibly exciting coming together of our two great companies is a defining moment within the glob- al packaging industry,” said Tony Smurfit, CEO of Smurfit Kappa. “We will have the leading assets, a unique global foot- print in both paper and corrugated, a superb consumer and specialty packaging business, significant synergies, and enhanced scale to deliver value in the short, medium and long term.” “We look forward to working with Smurfit Kappa to build a leading global platform that harnesses the strength of WestRock’s consumer portfolio, presents a truly com- prehensive offering of packaging solutions for customers and delivers meaningful value to our shareholders today and into the future,” said David Sewell, CEO of WestRock. “Smurfit Kappa shares our deep commitment to innova- tion across the packaging lifecycle, and we are confident that Smurfit WestRock will continue to lead the industry forward. I’m grateful to WestRock’s team members, whose hard work has made this combination possible, and excit- ed for the many opportunities that will arise from becom- ing part of the partner of choice in our industry.” The Boards of Smurfit Kappa and WestRock believe the combination will give them unparalleled geographic reach across 42 countries with a significant presence across both Europe and the Americas.
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www.boardconvertingnews.com
September 18, 2023
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