WestRock, a leading provider of differentiated paper and packaging solutions, entered into agreements to acquire substantially all of the assets of Island Container Corp and Combined Container Industries LLC. WestRock will pay total consideration representing an EBITDA multiple of less than 4.5 times on a post-synergy basis. The consideration will be made in cash.
The companies are independent producers of corrugated boxes, sheets and point-of-purchase displays. The assets to be acquired include a corrugator and the corrugated converting operations located in Wheatley Heights, New York, and certain related fulfillment assets located in Saddle Brook, New Jersey.
Steve Voorhees, CEO of WestRock, commented:
“Island Container and Combined Container have longstanding relationships with customers in cosmetic, pharmaceutical and food markets in the Northeastern United States, and we look forward to continuing these relationships. This acquisition will enable us to integrate more than 80,000 tons of containerboard into our corrugated packaging business.”
The transaction is subject to customary closing conditions.
WestRock Company is one of the largest paper and packaging companies with USD15 billion in annual revenue and 42,000 employees in approximately 275 operating and business locations in 30 countries spanning North America, South America, Europe and Asia.