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Paper Recycling December 13, 2017 02:30:56 PM

WestRock Company Announces Acquisition of Corrugated Box Packaging Firm

Paul Ploumis
ScrapMonster Author
The transaction covers Plymouth’s facilities in Battle Creek, Michigan; Ft. Worth, Texas; and Mechanicsburg, Pennsylvania.
WestRock Company Announces Acquisition of Corrugated Box Packaging Firm

SEATTLE (Scrap Monster): WestRock Company has entered into an agreement to acquire the assets of Plymouth Packaging, Inc.- a leading corrugated box packaging company based in Plymouth, Michigan. The financial details of the transaction were undisclosed. The acquisition is in line with WestRock’s efforts to further integrate its containerboard system and is subject to customary closing conditions. The transaction covers Plymouth’s facilities in Battle Creek, Michigan; Ft. Worth, Texas; and Mechanicsburg, Pennsylvania.

According to Jeff Chalovich, president of WestRock’s corrugated packaging business, the acquisition will help the company to develop its innovation platform. Further, the addition of Plymouth’s product portfolio will enhance WestRock’s automated packaging systems business. The strategic purchase deal is expected to boost the company’s growth prospects in corrugated packaging business, thereby boosting its margin profile significantly. Further, it will help the company to move one step closer to its goal to become 80% integrated, Chalovich added. Meantime, Greg Magnell, president, Plymouth Packaging, Inc. stated that they are excited to become part of WestRock. The two organizations are a strong cultural fit and their merger would provide access to broader geographic footprint, Magnell said.

Plymouth generates nearly 70% of its revenue from sales of its ‘Box on Demand” systems and corrugated fanfold. The balance 30% is derived from sales of traditional corrugated box packaging. Plymouth supplies “Box on Demand” machines, manufactured by Panotec, to customer sites that facilitate manufacture of corrugated packaging based on customer need and specifications. Currently, the company has around 100 satisfied customers. As part of the purchase deal, WestRock will acquire all of the Panotec equities owned by Plymouth, thereby attaining the sole and exclusive right to distribute Panotec’s equipment in the US and Canada.

Recently, WestRock had announced its plans to invest nearly $410 million in upgrading its Florence, South Carolina kraft linerboard mill through installation of most modern 330” kraft linerboard machine and related infrastructure to support the machine operations.

Norcross, Georgia-based Packaging and Paper products major WestRock Company has approximately 300 business locations spanning North America, South America, Europe, Asia and Australia.

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