Smurfit WestRock

History

2023: Creation of company resulting from Smurfit Kappa and WestRock merger

On September 12, 2023, the Irish company Smurfit Kappa Group, one of the leading manufacturers of corrugated packaging in Europe, announced the conclusion of a merger agreement with the American rival WestRock. The combined structure will be called Smurfit WestRock.

Under the terms of the contract, WestRock shareholders will receive for each of their security one share of the combined company Smurfit WestRock and $5 in cash, which is equivalent to $43.51 per share. In turn, the shareholders of Smurfit Kappa will receive one share of the formed structure. The total value of the transaction is estimated at $11 billion. Once the merger is complete, Smurfit Kappa shareholders will hold approximately 50.4% of the combined company's securities, WestRock holding the remaining 49.6%.

World's largest packaging manufacturers Smurfit Kappa and WestRock merge into one company

The deal has already won approval from the boards of both companies. After the merger, the CEO of Smurfit Kappa, Tony Smurfit, and the chairman of the board of this company, Irial Finan, will retain their positions in the new organization. Smurfit WestRock's board of directors will consist of six WestRock representatives and eight Smurfit Kappa members. In doing so, Smurfit WestRock will bring together the management teams of both companies.

The deal will form the world's largest packaging manufacturer with a market capitalization of approximately $20 billion. Smurfit WestRock's common stock will be listed on the New York Stock Exchange (NYSE). The new company will be registered in Ireland with its global headquarters in Dublin. The North American division will be located in Atlanta (Georgia). The asset combination is expected to conclude in the second quarter of calendar year 2024 after obtaining the necessary regulatory approvals in the European Union and the United States.^[1]

Notes