IRELAND – Smurfit Kappa has successfully completed its merger with folding paperboard box manufacturer WestRock.
As a result, Smurfit Kappa’s shares have been delisted from the premium segments of both the Financial Conduct Authority’s official list and Euronext Dublin’s official list. This follows the merger approval by WestRock’s shareholders last month.
Initially agreed upon in September last year, the merger has created a new entity, Smurfit WestRock, which has started trading on the New York Stock Exchange (NYSE) and the London Stock Exchange’s primary market for listed securities.
Smurfit Kappa shareholders hold a majority stake of approximately 50.4% in the new entity, with WestRock shareholders owning the remaining 49.6%.
“This incredibly exciting coming together of our two great companies is a defining moment within the global packaging industry. Smurfit WestRock will be the ‘go-to’ packaging partner for customers, employees, and shareholders,” said Tony Smurfit, CEO of Smurfit Kappa.
“We will have the leading assets, a unique global footprint in both paper and corrugated, a superb consumer and specialty packaging business, significant synergies, and enhanced scale to deliver value in the short, medium, and long term.”
Macfarlane acquires Polyformes
Macfarlane Group has announced the acquisition of UK-based protective packaging manufacturer Polyformes.
The deal, valued at £11.5 million (US$14.73m), includes an earn-out of up to £4.8 million (US$6.16m) based on agreed profit growth targets over the next two years.
This acquisition aligns with Macfarlane’s strategic objective to enhance its protective packaging business through both organic growth and strategic acquisitions.
Polyformes, located in Leighton Buzzard, specializes in designing and converting foam for specialist protective packaging applications, serving sectors such as aerospace, medical, defense, and industrial.
For the year ending 31 December 2023, Polyformes reported sales of £9.3 million (US$11.94m), earnings before interest, taxes, depreciation, and amortization of £1.5 million (US$1.93m), and pre-tax profits of £1.4 million (US$1.80m).
All 60 employees from Polyformes, including three directors, will join Macfarlane post-acquisition.
The acquisition is expected to be earnings accretive and is a testament to Macfarlane’s ‘buy-and-build’ strategy aimed at delivering increased value to stakeholders. Macfarlane financed the acquisition through its existing bank facility.
“Polyformes is a profitable, growing, well-invested company with an experienced management team that is fully committed to the business,” said Macfarlane CEO Peter Atkinson.
“We look forward to working with the team at Polyformes to support its continued growth and develop opportunities for us to work together to provide our customers with a broader portfolio of protective packaging solutions.”
Verallia closes acquisition of Vidrala’s glass division
French glass packaging manufacturer Verallia has successfully finalized its acquisition of Vidrala’s Italian subsidiary for an enterprise value of €230 million (US$249.31m).
First announced in February 2024, the deal has met regulatory requirements and conditions and is financed by a 3-year term loan from a pool of international banks.
Vidrala’s Italian subsidiary operates from one production site in Corsico near Milan, with two furnaces and a capacity of 225Kt per year.
The site has strong positioning, particularly in the beer, food, and spirits markets. In 2023, Vidrala generated revenue of €131 million (US$142m) and earnings before interest, taxes, depreciation, and amortization of €33 million (US$35.77m).
Almost 200 employees will join Verallia, reinforcing its expertise as the company works to expand its glass container offerings for the food and beverage industry in Italy. Verallia Group now operates seven production sites in the country.
“The acquisition of the Corsico plant represents a real asset for Verallia’s growth. It is in line with our strategic plan to grow in key European markets and an opportunity to reinforce our operational excellence for the benefit of our customers,” commented Verallia CEO Patrice Lucas.
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