Potential combination of Smurfit Kappa and Westrock would create a new global packaging giant. New holding company Smurfit Westrock to have its global headquarters in Dublin and North and South American operations in Atlanta, and be listed on the New York Stock Exchange.
Smurfit Kappa Group has confirmed news on merger talks with the US packaging company Westrock. In an announcement made with the consent of Westrock, Smurfit Kappa said that the companies' boards of directors are discussing the key terms of a potential combination to create Smurfit Westrock, "a global leader in sustainable packaging."
Merging Smurfit Kappa and Westrock would see the combination of "two highly complementary portfolios" and create a company with "unparalleled geographic reach across 42 countries with a siginicant presence across both Europe and the Americas," the group explained. Smurfit Kappa puts the combined sales revenue and adjusted EBITDA for the twelve months ended 30 June 2023 at approximately $34bn and 5.5bn, respectively.
According to Smurfit Kappa, the potential combination would be performed through an Irish scheme of arrangement involving Smurfit Kappa and a merger of a subsidiary with Westrock. Any such combination would result in Westrock shareholders receiving consideration consisting primarily of shares of the combined group, the group said. No financial details of the transaction were provided.
Discussions on the potential creation of Smurfit Westrock remain ongoing with Smurfit Kappa and Westrock engaged in a mutual due diligence process. Any potential deal would require shareholder approval and regulatory clearances, Smurfit Kappa stressed.