Smurfit Kappa Group and WestRock Co. have officially signed a merger agreement, creating a global paper and packaging powerhouse valued at approximately $20 billion. The merger was announced on September 7, and the new company will be named Smurfit WestRock. It will be listed on the New York Stock Exchange and have a standard listing in London.
Leadership and Ownership Structure
The newly formed Smurfit WestRock will be led by Tony Smurfit as Chief Executive and Irial Finan as Chairman. The boards of both companies are recommending the deal, which offers accepting WestRock shareholders one new Smurfit WestRock share and $5.00 in cash per share, amounting to $43.51 per share. Upon completion of the merger, Smurfit Kappa shareholders will hold a 50.4% stake in the combined business, while WestRock shareholders will own the rest.
Establishing a Strong Presence
Tony Smurfit, CEO of Smurfit Kappa, expressed his vision for the new company: “Smurfit WestRock will be the ‘Go-To’ packaging partner of choice for customers, employees, and shareholders. We will have leading assets, a unique global footprint in both paper and corrugated materials, an outstanding consumer and specialty packaging business, significant synergies, and an enhanced scale to deliver value in the short, medium, and long term.”
Headquarters and Operations
Smurfit WestRock will be incorporated and domiciled in Ireland, with its global headquarters based in Dublin. The company’s North and South American operations will be headquartered in Atlanta, Georgia.
Expected Timeline
Subject to shareholder, regulatory, and other approvals, the merger is projected to be completed in the second quarter of next year. The transaction has received significant attention since it was first disclosed by The Wall Street Journal.
Financial Performance
As of June 30, the combined adjusted revenue for Smurfit Kappa and WestRock was $34 billion, with adjusted earnings before interest, taxes, depreciation, and amortization amounting to $5.5 billion.
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