WestRock to Complete Kapstone Acquisition Before the End of 2018

SEATTLE (Scrap Monster): WestRock expects to complete the acquisition of Kapstone Paper and Packaging by the end of third quarter or in the fourth quarter of the current year, said Steve Voorhees, CEO of WestRock. With this important deal, the company’s containerboard share in North America is expected to touch nearly 24%, second only to International paper’s market share of 32.1%. Incidentally, the company is ranked first in North America in terms of boxboard capacity.

Earlier in May, the company had declared that the $4.9 billion merger deal with the Illinois-based paper packaging company is on track, despite intermediate delays on account of intervention by the U.S. Department of Justice (DOJ). The DOJ had requested additional information regarding the deal under the federal anti-trust laws. The merger is expected to boost WestRock’s overall mix of virgin fibre from 65% to 67% and generate nearly $200 million in cost synergies and performance improvements.

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According to RISI, WestRock has completed most number of mergers and acquisitions during the past three years. Since its formation through merger of packaging giants RockTenn and MeadWestvaco in 2015, WestRock has completed nine major acquisitions. This includes the mega acquisition of Multi Packaging Solutions (MPS) last year for a sum of $2.28 billion. The acquisitions have resulted in dramatic growth in size of the company. WestRock currently employs around 45,000 people.

WestRock had recently announced significant upgrades to its U.S. facilities, including installation of a new linerboard production line at its Florence mill and new corrugator machine at its Saltillo facility.