WestRock Acquisition of Grupo Gondi Complete

Rhea-AI Summary

WestRock Company (NYSE: WRK) has finalized the acquisition of Grupo Gondi for $970 million alongside the assumption of debt. This deal, which is immediately accretive to earnings, includes four paper mills, nine corrugated packaging plants, and six high graphic plants across Mexico. The acquisition strengthens WestRock's position in the Latin American packaging market, enhancing its ability to offer sustainable solutions to customers. CEO David B. Sewell expressed optimism about the synergies and expertise the Grupo Gondi team will bring to the company.

Positive

• Acquisition of Grupo Gondi for $970 million enhances WestRock's position in the Latin American market.
• Immediate accretion to earnings expected from the transaction.
• Inclusion of four paper mills and nine corrugated packaging plants expands operational capabilities.

Negative

• None.

ATLANTA--(BUSINESS WIRE)-- WestRock Company (NYSE:WRK) today announced it has completed the acquisition of the remaining interest in Grupo Gondi for $970 million plus the assumption of debt. The transaction is immediately accretive to earnings, subject to customary purchase price allocations.

The acquisition of Grupo Gondi includes four paper mills, nine corrugated packaging plants and six high graphic plants throughout Mexico that produce sustainable packaging for a wide range of end markets in the region. This acquisition will enhance the Company’s leading position in the growing Latin American containerboard, paperboard and consumer and corrugated packaging markets.

“We are pleased to welcome the Grupo Gondi team to WestRock,” said David B. Sewell, WestRock president and chief executive officer. “The addition of Grupo Gondi’s operations in Mexico enables us to better serve the Latin American market with our broad portfolio of paper and packaging solutions. The capability and expertise that this team brings to WestRock will help us continue to provide complete packaging solutions for our customers.”

Additional information will be provided during WestRock’s first quarter conference call.

About WestRock

WestRock (NYSE: WRK) partners with our customers to provide sustainable paper and packaging solutions that help them win in the marketplace. WestRock’s team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia. Learn more at www.westrock.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations, beliefs, plans or forecasts 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 involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. We caution readers that forward-looking statements are not a guarantee of future performance and that actual results could differ materially from those contained in forward-looking statements. Our businesses are subject to a number of risks that would affect any such forward-looking statements. These risks are described in our filings with the Securities and Exchange Commission, including in Item 1A under the caption “Risk Factors” in our annual report on Form 10-K for the year ended September 30, 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221201005957/en/

Media:

Robby Johnson, 470-328-6397

Manager, Corporate Communications

robby.b.johnson@westrock.com



Investors:

Rob Quartaro, 470-328-6327

Senior Vice President, Investor Relations

rob.quartaro@westrock.com

Source: WestRock Company

FAQ

What is the value of WestRock's acquisition of Grupo Gondi?

The acquisition of Grupo Gondi is valued at $970 million, plus the assumption of debt.

How does the acquisition of Grupo Gondi impact WestRock's earnings?

The acquisition is immediately accretive to WestRock's earnings.

What facilities are included in the Grupo Gondi acquisition?

The acquisition includes four paper mills, nine corrugated packaging plants, and six high graphic plants in Mexico.

What market does WestRock aim to strengthen with this acquisition?

WestRock aims to strengthen its position in the growing Latin American containerboard, paperboard, and packaging markets.

When will more details about the acquisition be available?

Additional information will be provided during WestRock's first quarter conference call.