WestRock, KapStone ( Cont’d from Page 1)
and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft. KapStone also owns Victory Packaging, a packaging solutions distribution company with facilities in the United States, Canada and Mexico. It employs 6,200 people in its 91 locations in North America. The transaction is expected to generate annual run- rate cost synergies and performance improvements of approximately $200 million by the end of fiscal 2021 that WestRock expects will be captured through the integration of the KapStone operations into WestRock’s corrugated packaging system. The categories of benefits include process and capital im- provements at mill and box plant locations, convert- ing and network optimization, procurement and administrative efficiencies. The acquisition will en- able WestRock to supply additional corrugated pack- aging to Victory Packaging. The acquisition will accelerateWestRock’s plans to improve margins in its North American corrugated packaging business. The addition of KapStone’sWest Coast facilities report- edly improves WestRock’s ability to serve customers in this area and reduce costs across its supply chain. In ad- dition, this expansion opens new opportunities for We- stRock to sell the full suite of its product portfolio to KapStone’s current customers in this region. The addition of KapStone’s complementary special- ty kraft paper offerings that WestRock does not offer today enables WestRock to provide a broader prod- uct portfolio to existing customers, as well as pro- vides new oppor tunities to sell WestRock’s enterprise-wide offerings to KapStone’s customers. Increases mix of virgin fiber based paper in We- stRock’s paper portfolio. KapStone’s 3 million tons of paper is made using 78 percent virgin fiber and 22 percent recovered fiber. This increases WestRock’s overall mix of virgin fiber from 65 percent to 67 percent. The transaction is subject to a number of custom- ary closing conditions, including a vote by Kap- Stone’s stockholders, and is expected to close during the quarter ending September 30. PIA Launches Redeveloped iLearning Center Printing Industries of America has launched its newly redeveloped iLearning Center, now a compli- mentary member benefit for its printer members at non-additional charge.The new iLearning Center is said to feature better content, organization, and an improved learning management system.
6 February 5, 2018 Flexo Market News
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