- WestRock Company (NYSE:WRK) acquires KapStone Paper and Packaging Corporation (NYSE:KS) for $35.00 per share.
- WestRock will assume approximately $1.36B as part of the deal to make the full deal value ~$4.9B.
- KapStone stockholders will have the option to receive $35.00 per share in cash, or to elect to receive 0.4981 WestRock shares per KapStone share, with elections of stock consideration capped at 25% of the outstanding KapStone shares.
- The deal is expected to be highly accretive with significant synergy potential.
- “KapStone is a great fit with WestRock. Their complementary corrugated packaging and distribution operations will enhance WestRock’s ability to serve customers across our system, particularly in the western United States, and the addition of their specialty kraft paper products that we do not make enhances our differentiated portfolio of paper and packaging solutions,” notes WestRock CEO Steve Voorhees.
- Source: Press Release
- Shares of KapStone are up 29.99% to $34.50.
- Now read: KapStone Paper And Packaging Corp. - A Marginally Troubling Story
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