WestRock to Acquire Remaining Interest in Grupo Gondi

SEATTLE (Scrap Monster): WestRock Company announced that it has entered into an agreement to acquire the remaining assets of Grupo Gondi for $970 million, plus the assumption of debt. The transaction represents an estimated implied enterprise value of $1.763 billion.

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The transaction covers four paper mills, nine corrugated packaging plants and six high graphic plants of Grupo Gondi throughout Mexico. The acquisition will further reiterate WestRock’s leading position in the growing Latin American containerboard, paperboard and consumer and corrugated packaging markets. Furthermore, it will provide the company with further geographic and end market diversification.

David B. Sewell, chief executive officer of WestRock noted that the acquisition of the remaining interest in Grupo Gondi is the next strategic step in the company’s broader North American paper and packaging expansion strategy. The expanded capabilities will help WestRock to serve customers across many geographies, driving additional productivity and cost savings, he added.

It must be noted that WestRock currently owns 32.3% of Grupo Gondi. The transaction will secure the remaining 67.7%. The transaction is expected to close by the end of the calendar year 2022.