Packaging

WestRock acquires five plants of U.S. Corrugated

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The US packaging giant WestRock has announced that it has completed the acquisition of some company branches of U.S. Corrugated, i.e. a major independent producer of corrugated cardboard for the packaging sector. The agreement foresees the payment of 192 million dollars in cash and common shares in the capital of WestRock. The latter has acquired five plants for corrugated cardboard converting in Ohio, Pennsylvania and Louisiana from U.S. Corrugated, through which it can offer a complete set of products and services in several final markets, including food and beverages, pharmaceuticals and consumer electronics. The company has announced that it aims at achieving major results in terms of efficiency from said acquisitions, although a spokesperson from the company declared that there aren’t any plans yet for the closure of the factories.

The plants for the production of corrugated cardboard mainly serve regional markets, therefore the acquisition will provide WestRock with a better service capacity to meet the needs of its Midwest customers. Furthermore, it will improve margin profits for corrugated cardboard packagings. Thanks to the deal WestRock will receive about 105 thousand tons corrugated cardboard every year at the facilities it has bought and additional 50 thousand tons through a long term contract signed with a new company, which was established from the remaining activities of US Corrugated. USA Corrugated has about 400 employees working at the five plants that will be added to WestRock.

WestRock will not acquire the U.S. Corrugated plants in California, Georgia and Ashland, Ohio, not its related activities in New Jersey and Tennessee.

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