The American packaging manufacturer, WestRock, has purchased US-based paper mill company, KapStone, for around $4.9bn, FoodBev Media reports.
The acquisition will see Kapstone’s Kraftpak line and e-commerce delivery clients like Graze join WestRock’s corrugated packaging division.
WestRock has agreed to buy all shares in KapStone for $35 per share and it is thought that deal will provide $200mn in cost savings by 2021.
The move will significantly increase operations in the west of the US and expand the number of differentiated paper and packaging solutions.
“I am pleased that we have completed the acquisition of KapStone Paper and Packaging, and I welcome our new teammates to WestRock,” said Steve Voorhees, chief executive officer of 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.”
The company employs approximately 6,400 people and has four paper mills, 22 production facilities and over 60 distribution centres across North America.