Business News

Smurfit Kappa and WestRock to merge, forming ‘one of the world’s largest paper and packaging producers’

By Business & Finance
13 September 2023
Tony Smurfit
Pictured: Tony Smurfit, CEO, Smurfit Kappa Group

The new group will be called Smurfit WestRock and will be formed in a deal worth approximately $20 billion

Paper and packaging producers Smurfit Kappa and WestRock have agreed to merge in a deal worth approximately $20 billion. The announcement was made by both companies yesterday, 12 September.

The new group will be titled Smurfit WestRock. According to a statement released by both companies, it will be the “largest listed global packaging partner by revenue.”

The deal will see both companies combine to form a giant that produces paper-based storage boxes, bottle packaging, paper sacks, e-commerce shipping materials, and more.

Tony Smurfit will continue in his capacity as chief executive officer of the new company.

Combined adjusted 12-month revenue of both companies is about $34 billion (€31.7 billion) for the year end 30 June.

The Boards of Directors of both Smurfit Kappa and WestRock have unanimously approved the Transaction and resolved to recommend that their respective shareholders vote in favour of the Transaction.

Commenting on the merger, Tony Smurfit, CEO of Smurfit Kappa, said: “This incredibly exciting coming together of our two great companies is a defining moment within the global packaging industry. Smurfit WestRock will be the ‘Go-To’ packaging partner of choice for customers, employees and shareholders. We will have the leading assets, a unique global footprint in both paper and corrugated, a superb consumer and specialty packaging business, significant synergies, and enhanced scale to deliver value in the short, medium and long term.”

Echoing his sentiments is David Sewell, CEO of WestRock, who said: “We look forward to working with Smurfit Kappa to build a leading global platform that harnesses the strength of WestRock’s consumer portfolio, presents a truly comprehensive offering of packaging solutions for customers and delivers meaningful value to our shareholders today and into the future.

“Smurfit Kappa shares our deep commitment to innovation across the packaging lifecycle, and we are confident that Smurfit WestRock will continue to lead the industry forward. I’m grateful to WestRock’s team members, whose hard work has made this combination possible, and excited for the many opportunities that will arise from becoming part of the partner of choice in our industry.”

Smurfit Kappa shareholders will receive one new share for each ordinary share in Smurfit Kappa.

Immediately following completion, Smurfit Kappa shareholders and WestRock stockholders are expected to own approximately 50.4% and 49.6% of Smurfit WestRock, respectively.

The new combined company is expected to employ 100,000 people across its global operations.


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