Smurfit Kappa, WestRock combining to create a global packaging company with a value of almost $20B

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Smurfit Kappa and WestRock are combining to create a global packaging company with a value of almost $20 billion

Smurfit Kappa and WestRock will join to create a global packaging company with a value of almost $20 billion.

Smurfit Kappa has a stronghold in Europe with its corrugated and containerboard products. WestRock dominates in the U.S. in corrugated and consumer packaging and has a footprint in Brazil and Mexico as well.

The companies are the fifth and seventh largest packaging companies worldwide and combined, would become the second largest behind West Pharmaceutical, which makes drug packaging.

WestRock shareholders will receive $5 in cash and one share in the new company, called Smurfit WestRock, for each WestRock share that they own. This is equivalent to $43.51 per WestRock share, which makes the transaction worth about $11 billion.

Smurfit Kappa stockholders will receive one share in the new company for each Smurfit Kappa share.

Smurfit Kappa shareholders will own approximately 50.4% of Smurfit WestRock, while WestRock shareholders will own about 49.6% of the combined company.

Smurfit WestRock will be incorporated and domiciled in Ireland, with global headquarters in Dublin, Ireland, where Smurfit Kappa is based. Its North and South American operations will be based in Atlanta, where WestRock has its headquarters.

The companies combined reported adjusted annual revenue of approximately $34 billion in the last year. The board of the new company will include six WestRock directors and eight Smurfit Kappa directors. Smurfit Kappa CEO Tony Smurfit will be the chief executive of the combined company. Irial Finan, the chairman at Smurfit Kappa, will be chair of the company and Ken Bowles, chief financial