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WestRock to acquire KapStone Paper

The US packaging firm, WestRock, has announced that it will be purchasing its rival, KapStone Paper and Packaging Corp. The deal has been valued at US$...

Sophie Chapman
|Jan 30|magazine4 min read

The US packaging firm, WestRock, has announced that it will be purchasing its rival, KapStone Paper and Packaging Corp.

The deal has been valued at US$4.9bn, with WestRock paying approximately $3.5bn for the firm.

KapStone has a net debt of about $1.36bn, which would have been included in the deal.

WestRock offered shareholders a cash sum of $35 per share, or 0.4981 in WestRock shares.

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Subsequent to the offer, WestRock saw their shares plummet 2.8% to $68.31, with KapStone’s rising by 30% to $34.48.

“This is one of the last opportunities to consolidate in an industry that’s already becoming very well-structured,” stated Steven Chercover, Analyst at D.A. Davidson & Co, according to Reuters.

WestRock is considered to be the second largest packaging firm, following International Paper.

The firm acquired Multi Packaging Solutions International Ltd in 2017, and focused solely on it’s paper and packaging division, dissolving the company’s other branches in soap dispenser and perfume sprayers.