WestRock to acquire Multi Packaging Solutions

WestRock Co., Norcross, Georgia, has reached a definitive agreement to acquire Multi Packaging Solutions International Ltd. (MPS), headquartered in New York City, for $2.28 billion.

MPS provides print-based specialty packaging solutions. Its differentiated product offering includes premium folding cartons, inserts, labels and rigid packaging. The company, with 59 locations throughout North America, Europe and Asia, focuses its business on customers in the consumer and health care sectors. Those two sectors accounted for about 90 percent of MPS’ revenue in 2016.

“The acquisition of MPS is an important step forward that advances our strategy and will create significant value for our customers, employees and shareholders,” says Steve Voorhees, CEO of WestRock. “Through this transaction, we will add a leader in the value-added packaging sector that strengthens our differentiated portfolio of paper and packaging solutions. Led by their talented management team, MPS shares our commitment to provide our customers with differentiated packaging solutions that help them win in the marketplace.

“The combination of WestRock and MPS creates opportunities to drive margin expansion and enhanced financial returns through a combination of increased integration and identified synergies,” Voorhees adds. “Overall, this is a highly strategic transaction consistent with our balanced capital allocation strategy that we expect will generate compelling growth and returns. We have the right team in place with deep integration experience to fully realize this opportunity.”

Marc Shore and Dennis Kaltman, CEO and president of MPS, respectively, will join WestRock.

WestRock also notes that MPS is one of the largest nonintegrated consumers of bleached paperboard, using about 225,000 tons of paperboard each year in its production facilities. WestRock says the acquisition will create opportunities to integrate between 35 to 45 percent of this consumption.