Paper and packaging solutions provider WestRock has completed the acquisition of KapStone Paper and Packaging, an American pulp and paper company based in Northbrook, Illinois.
Image: WestRock has acquired KapStone Paper and Packaging. Photo: courtesy of rawpixel / Unsplash.
The agreement to acquire KapStone Paper and Packaging for an enterprise value of around $4.9bn was signed in January this year.
As part of the deal, WestRock agreed to purchase KapStone stock by paying $35.00 per share and assume about $1.36bn in net debt.
Recently, the company secured approval from the US Department of Justice for the acquisition.
Based in Northbrook of Illinois, KapStone manufactures containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft.
KapStone also owns Victory Packaging, a packaging solutions distribution firm with facilities in the US, Canada and Mexico.
WestRock said it expects to achieve around $200m in synergies and performance improvements by the end of fiscal 2021 through the integration of the former KapStone operations into its corrugated business.
The acquired business will allow WestRock to expand its operations in the West Coast of the US, as well as broaden its differentiated paper and packaging solutions with the addition of advanced paper grades and distribution capabilities.
WestRock CEO Steve Voorhees said: “I am pleased that we have completed the acquisition of KapStone Paper and Packaging, and I welcome our new teammates to WestRock.
“The addition of KapStone enhances our differentiated portfolio of paper and packaging solutions and will enable us to serve our customers better across our system.
“We look forward to delivering on the opportunities that the addition of KapStone provides for our team, our customers and our stockholders.”
Lazard served as investment bank and financial advisor to WestRock, and Wells Fargo also acted as a financial advisor to WestRock. Cravath, Swaine & Moore served as legal advisor to WestRock, and King and Spalding acted as antitrust counsel to WestRock
Rothschild & Co and Moelis acted as financial advisors to KapStone, while Sidley Austin served as legal advisor to KapStone.