Smurfit Kappa and WestRock ink a deal to create a global packaging leader
Smurfit Kappa and WestRock have confirmed an agreement to combine their businesses into a USD 20 billion company. This is to create Smurfit WestRock, a global leader in sustainable packaging.
14 Sep 2023 | By Abhay Avadhani
The joint venture is a USD 11 billion investment which aims to create the largest containerboard producer
The boards of Smurfit Kappa and WestRock see compelling strategic, commercial and financial rationale for combining Smurfit Kappa and WestRock’s highly complementary paper-based packaging companies to create a global leader in sustainable packaging. The Combination will enhance Smurfit Kappa and WestRock’s existing offerings by creating the global “Go-To” packaging partner of choice.
The partnership will bring together Smurfit Kappa’s operational execution and innovation in corrugated and containerboard, as well as its large-scale pan-regional Americas presence. The agreement will also witness WestRock’s leadership in the United States as well as its strong footprint in Brazil and Mexico, across corrugated and consumer packaging delivering a broad portfolio of packaging solutions serving diverse end-markets.
Smurfit WestRock will have geographic and product diversity with a culturally aligned customer focus and capabilities to serve customers globally. Together, Smurfit Kappa and WestRock generated combined last twelve months’ adjusted annual revenue of approximately USD 34 billion as of 30 June 2023. This would make Smurfit WestRock the largest listed global packaging partner by revenue.
Smurfit WestRock will be incorporated and domiciled in Ireland with global headquarters in Dublin, Ireland. Its North and South American operations will be headquartered in Atlanta, Georgia. Subject to shareholder approvals, regulatory approvals and other customary closing conditions, the combination is expected to close in the second quarter of 2024.