A local packaging giant has ripped open 2017 with a pair of back-to-back 10-figure deals.
Downtown-based WestRock announced Tuesday it will acquire New York firm Multi Packaging Solutions International Ltd. in a deal valued at $2.28 billion.
The deal, which WestRock said will enhance its presence in healthcare and consumer markets, is expected to close in July.
The announcement came one day after WestRock said it is selling its home, health and beauty business to Stamford, Connecticut-based Silgan Holdings for $1.02 billion, plus the assumption of $25 million in foreign pension liability. That deal is expected to close before April.
WestRock said the deals, while both relating to its healthcare and beauty markets, better align its portfolio and resources around its core paper and packaging businesses. Where its home, health and beauty business has focused on designing and producing plastic dispensers, such as perfume sprayers, the addition of MPS brings print-based specialty packaging such as folding cartons, inserts, labels and rigid packaging.
WestRock said the acquisition includes an assumption of $873 million in MPS debt and will be financed through a combination of cash and existing credit facilities. The sale to Silgan adds to that cash on hand.
The MPS deal includes CEO Marc Shore and president Dennis Kaltman, who will join WestRock as part of the transaction.
Founded in 2005, MPS serves customers through 59 locations in North America, Europe and Asia. It is one of the largest consumers of bleached paperboard in the world, using 225,000 tons of paperboard each year in its production facilities.
Also on Tuesday, WestRock reported its earnings for the first quarter, which ended Dec. 31. Revenues totaled $3.44 billion, compared to $3.47 billion in the same quarter the year before. Profits totaled $80.9 million, compared to a loss of $453.5 million in the same three months the previous year.
Headquartered in the riverfront tower at 501 S. Fifth St., WestRock was formed in 2015 following the merger of Richmond-based packaging company MeadWestvaco and Georgia-based Rock-Tenn Co. Since then, the Fortune 500 firm has completed several mergers, including the addition later that year of SP Fiber Holdings in a $288.5 million deal.