The merger of WestRock and Smurfit Kappa is expected to close in the second quarter of 2024, creating a "global leader in sustainable packaging".
The potential merger between paper packaging companies WestRock and Smurfit Kappa announced on September 7th was officialized on September 12th, with the transaction set to be completed in the second quarter of 2024.
As previously reported, the two entities' combined global reach would cover some 42 countries with around 500 converting operations and 67 mills and approximately 100,000 employees. In comparison, the industry's current leader, International Paper Co., operates over 220 facilities and 28 mills. Combined revenue for both Smurfit Kappa and WestRock for the last 12 months ending June 30, 2023 stands at $34bn, while adjusted Ebitda is $5.5bn.
Dublin-headquartered Smurfit Kappa has a leading position in Europe in the corrugated and containerboard segments as well as a pan-regional Americas presence, while US-based WestRock has a significant footprint in Mexico and Brazil and US leadership in corrugated and consumer packaging, Smurfit Kappa highlights.
Tony Smurfit to be CEO of Smurfit WestRock
The deal will give rise to a new holding company, Smurfit WestRock, led by Tony Smurfit as CEO and Irial Finan (currently Smurfit Kappa Chair) as Chair. Some six WestRock directors and eight Smurfit Kappa Directors will sit on the board. Smurfit WestRock’s global headquarters will be in Dublin, Ireland and the Americas business located in Atlanta, Georgia.