The acquisition of Grupo Gondi involves four paper mills, nine corrugated packaging facilities, and six high-graphic facilities located throughout Mexico
The transaction is – inter alia - subject to court approval and possible regulatory clearances. (Credit: Roberto Sorin on Unsplash)
US-based corrugated packaging company WestRock has wrapped up the acquisition of the remaining interest in Mexico-based Grupo Gondi for $970m plus the assumption of debt.
WestRock said that the transaction immediately increases earnings, subject to customary purchase price allocations.
The acquisition of the Grupo Gondi involves four paper mills, nine corrugated packaging facilities, and six high-graphic facilities throughout Mexico. These facilities provide sustainable packaging for a variety of regional end markets.
The deal will also boost the company’s position in the expanding Latin American containerboard, paperboard and consumer and corrugated packaging markets.
WestRock president and chief executive officer David B. Sewell said: “We are pleased to welcome the Grupo Gondi team to WestRock.
“The addition of Grupo Gondi’s operations in Mexico enables us to better serve the Latin American market with our broad portfolio of paper and packaging solutions.
“The capability and expertise that this team brings to WestRock will help us continue to provide complete packaging solutions for our customers.”
WestRock partners with customers in North America, South America, Europe, Asia and Australia to provide sustainable paper and packaging solutions.
Additionally, the firm agreed to sell its uncoated recycled paperboard (URB) plants in Eaton, Indiana, and Aurora, Illinois, to Ox Industries for $50m.