Gwinnett-based WestRock Company acquires Kapstone for $4.9 billion


Georgia Paper manufacturer WestRock Company announced Monday that it had acquired KapStone Paper and Packaging Corporation of Illinois for a total enterprise value of $4.9 billion.

In a joint statement, the two companies said WestRock would assume $1.36 billion in KapStone’s net debt as part of the deal. That debt will be refinanced as part of the closing transaction, expected to take place in September.

Steve Voorhees, the CEO for WestRock said the deal would help expand his company’s operations to the West Coast and incorporate KapStone’s new paper products into WestRock’s portfolio.

With the expansion and new resources ,WestRock estimates the company will generate $200 million in profits by 2021.

“We look forward to welcoming the KapStone team members to WestRock and working with them to help make WestRock an even better company,” said Voorhees.

WestRock employs 45,000 people in five continents.

KapStone’s CEO Matt Kaplan said the agreement allows KapStone stockholders to receive either WestRock shares or $35 in cash per KapStone share.

“The transaction enables us to deliver an immediate and compelling cash premium to our shareholders,” said Kaplan.

KapStone, headquartered in Northbrook, is a leading producer and manufacturer specialty paper, corrugated products and container board. It employs 6,200 people in its 91 locations in North America. The company also owns Victory Packaging, which operates in the U.S., Canada and Mexico.

WestRock would not say how the deal might affect employees.

“Until we close the deal in September, it’s business as usual for both companies,” said Director of Corporate Communications John Pensec.

The acquisition is contingent upon approval by KapStone’s stockholders.



Reader Comments ...


Next Up in Business

Delta ending discount for NRA members
Delta ending discount for NRA members

Delta Air Lines announced Saturday it is ending a discount for National Rifle Association members. Atlanta-based Delta said it is ending its contract for discounted rates through the airline’s group travel program. “We will be requesting that the NRA remove our information from its website,” Delta said in a written statement...
Should you talk about your pay? Career experts weigh in
Should you talk about your pay? Career experts weigh in

Even with nearly every cultural taboo thrown to the wind− from discussing sexual orientation to politics; one last conversational taboo still exist among Americans − how much we get paid. "These days, it's okay to talk about the troubles we're having with our children or even our marriages," noted one blogger from PayScale...
BB&T recovering after 'technical issue' left customers without access to accounts, cash
BB&T recovering after 'technical issue' left customers without access to accounts, cash

Millions of BB&T customers were locked out of their accounts Thursday night and Friday morning due to an outage that bank officials said was caused by a "technical issue." The interruption of services was first reported Thursday night and appeared to last until just before noon Friday. “At this time, many of our services...
Krog Street Market developer plans redo of aging Atlanta hotel
Krog Street Market developer plans redo of aging Atlanta hotel

The developer of Atlanta’s Krog Street Market plans to convert an aging extended stay hotel in the Piedmont Heights neighborhood of the city into an eclectic boutique hotel. Atlanta-based Paces Properties said it has signed a deal with Texas hotelier Liz Lambert and her Austin-based hospitality company Bunkhouse to retrofit the...
UPS to add new electric delivery trucks to fleet
UPS to add new electric delivery trucks to fleet

UPS plans to deploy 50 electric delivery trucks as part of its fleet of brown vehicles, a move it expects could give a boost to adoption of electric vehicles across the industry. Sandy Springs-based UPS in its Thursday announcement said the trucks – which it is partnering with electric vehicle manufacturer Workhorse Group Inc....
More Stories