WestRock completes acquisition of KapStone

Atlanta-based containerboard producer WestRock completed the acquisition of Illinois-based KapStone Paper and Packaging Corporation. WestRock’s acquisition of KapStone’s assets was announced in January 2018, and the acquisition was anticipated to close by September 2018. 

“I am pleased that we have completed the acquisition of KapStone Paper and Packaging, and I welcome our new teammates to WestRock,” says Steve Voorhees, CEO of WestRock, in a company news release. “The addition of KapStone enhances our differentiated portfolio of paper and packaging solutions and will enable us to serve our customers better across our system. We look forward to delivering on the opportunities that the addition of KapStone provides for our team, our customers and our stockholders.”

According to a WestRock news release, the company expects to achieve approximately $200 million in synergies and performance improvements by the end of fiscal 2021 through the integration of the former KapStone operations into WestRock’s corrugated business. WestRock reports that the acquisition also strengthens its presence on the West Coast of the United States and expands its portfolio of differentiated paper and packaging solutions with the addition of more attractive paper grades and distribution capabilities.

WestRock financed the transaction through the issuance of debt from a bank term loan facility, existing credit commitments and cash on hand, according to a WestRock news release. Lazard served as lead investment bank and financial advisor to WestRock. Wells Fargo also acted as a financial advisor to WestRock and is the agent for a syndicate of banks that provided the financing for the transaction. Cravath, Swaine & Moore LLP acted as legal advisor to WestRock, and King and Spalding LLP served as antitrust counsel to WestRock.

Rothschild & Co. and Moelis & Company LLC served as financial advisors to KapStone, WestRock reports. Sidley Austin LLP acted as legal advisor to KapStone.