NORCROSS, Ga., June 21, 2017 (GLOBE NEWSWIRE) -- WestRock Company (NYSE:WRK) today announced that it has entered into agreements to acquire substantially all of the assets of Island Container Corp. and Combined Container Industries LLC, which together are independent producers of corrugated boxes, sheets and point-of-purchase displays.
The assets to be acquired include a corrugator and the corrugated converting operations located in Wheatley Heights, New York, and certain related fulfillment assets located in Saddle Brook, New Jersey.
“Island Container and Combined Container have longstanding relationships with customers in cosmetic, pharmaceutical and food markets in the Northeastern United States, and we look forward to continuing these relationships,” said Steve Voorhees, chief executive officer of WestRock. “This acquisition will enable us to integrate more than 80,000 tons of containerboard into our corrugated packaging business.”
WestRock will pay total consideration representing an EBITDA multiple of less than 4.5 times on a post-synergy basis. The consideration will be made in cash. The transaction is subject to customary closing conditions.
Forward-Looking Statements
This release contains forward-looking statements that are based on management’s current views and assumptions and are typically identified by words or phrases such as "may," "will," "could," "should," "would," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "prospects," "potential" and "forecast," and other words, terms and phrases of similar meaning. Forward-looking statements include statements such as that the acquisition will enable us to integrate more than 80,000 tons of containerboard into our corrugated packaging business. Factors that may affect actual results include, but are not limited to, economic, competitive and market conditions generally, volumes and price levels of purchases by customers; our ability to realize anticipated synergies; and competitive conditions in our businesses and possible adverse actions of their customers, competitors and suppliers. Please refer to the cautionary statements set forth in Item 1A of our Annual Report on Form 10-K for the year ended September 30, 2016 and Quarterly Reports on Form 10-Q for the quarters ended December 31, 2016 and March 31, 2017. We undertake no duty to update forward-looking statements.
About WestRock
WestRock (NYSE:WRK) partners with our customers to provide differentiated paper and packaging solutions that help them win in the marketplace. WestRock’s 45,000 team members support customers around the world from more than 300 operating and business locations spanning North America, South America, Europe and Asia. Learn more at www.westrock.com.
CONTACT:
WestRock
Investors:
Matt Tractenberg, 470-328-6327
Vice President, Head of Investor Relations
matt.tractenberg@westrock.com
John Stakel, 678-291-7901
Senior Vice President - Treasurer
john.stakel@westrock.com
Media:
Donna Owens Cox, 470-328-6397
Chief Communications Officer
mediainquiries@westrock.com