WestRock completes acquisition of Grupo Gondi

Atlanta-based paper and packaging company WestRock. Co. has announced it has completed the acquisition of the remaining interest in Grupo Gondi in a deal worth $970 million plus the assumption of debt, representing an estimated enterprise value of $1.763 billion.

The closure comes after the agreement previously was announced in July. At that time, WestRock held a 32.3 percent stake in the Mexico City-based packaging producer.

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“The addition of Grupo Gondi’s operations in Mexico enables us to better serve the Latin American market with our broad portfolio of paper and packaging solutions,” WestRock President and CEO David B. Sewell says. “The capability and expertise that this team brings to WestRock will help us continue to provide complete packaging solutions for our customers.”

The acquisition includes four paper mills, nine corrugated packaging plants and six high graphic plants throughout Mexico that produce sustainable packaging for a wide range of end markets in the region. Grupo Gondi has been operating in Mexico since 1954 through what it says is a “vertically integrated process that allows us to offer reliable, impressive, sustainable and innovative packaging.”

Grupo Gondi expects its 2022 earnings before interest, taxes, depreciation and amortization will be approximately $200 million.

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The company’s President Alejandro González Cimadevilla said at the time of the announcement in July, "WestRock and Grupo Gondi have been great joint venture (JV) partners over the past six years, working together to provide outstanding service and innovation for our customers. Becoming part of WestRock, with its scale, geographic footprint and customer-focused solutions will further enhance our ability to provide complete packaging solutions for our customers."