WestRock to acquire five US Corrugated facilities

By Jenny Eagle contact

- Last updated on GMT

WestRock makes corrugated packaging for the F&B industry. Picture: WestRock.
WestRock makes corrugated packaging for the F&B industry. Picture: WestRock.
WestRock Company will acquire five converting facilities in Ohio, Pennsylvania, and Louisiana from US Corrugated; which makes corrugated products for packaging and displays.

It will not acquire the company’s facilities in California, Georgia, and Ashland, Ohio, nor its affiliates in New Jersey and Tennessee.

Steve Voorhees, CEO, WestRock, said the acquisition will enhance its capabilities to serve customers across the Midwest, increase its integration and improve the margins of its corrugated packaging business.

The approximately $192m transaction is expected to close in June 2017.

When the transaction closes, we expect to realize significant synergies from supply chain optimization, better procurement, and integrating approximately 105,000 tons of the containerboard converted annually by the acquired facilities and another 50,000 tons under a long-term contract with a newly created company formed from the remaining assets of US Corrugated​,” said Jeff Chalovich, president, Corrugated Packaging, WestRock.

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