Georgia-based paper packaging firm announces big acquisition

ATLANTA (Scrap Monster): Norcross, Georgia-based WestRock Co. has announced that it has entered into a definitive agreement to acquire SP Fiber Holdings Inc.-a company that produces recycled containerboard and kraft and bag paper with mill facilities in Dublin, Georgia, and Newberg, Oregon. The company will also acquire SP Fiber’s 48 percent interest in Green Power Solutions of Georgia, LLC (GPS). The total value of the transaction is estimated at around $288.5 million.

According to WestRock, the addition of Dublin and Newberg mills will help the company to balance its fiber mix. The acquisition will also help them to diversify its product range through addition of kraft and bag paper. It plans to improve the cost-efficiency at both these mills, thereby improving the production of lighter weight containerboard and kraft paper. By adding significantly to the efficiencies at the mills, WestRock intends to serve its customers more effectively.

The transaction is subject to certain regulatory approvals and will close after conclusion of the regulatory process.

WestRock was recently formed following the merger of MeadWestVaco Corp. and Rock-Tenn Co. It is a leading global packaging company that aims to become unrivaled provider of paper and packaging solutions in global consumer and corrugated markets. It has around 275 operating and business locations in almost 30 countries spanning North America, South America, Europe and Asia-Pacific.

SP Fiber is a leading producer of containerboard and kraft and bag paper made from 100% post-consumer recycled fiber.