Smurfit WestRock becomes the world’s largest listed global packaging partner, with adjusted revenue of $34 billion.
European Commission approval and all pending regulatory approvals that were a condition to closing the previously announced merger between Smurfit Kappa and WestRock Company were obtained and the transaction closed on July 5, 2024.
From the merger between Smurfit Kappa and WestRock, Smurfit Westrock plc was born, a world leader in sustainable packaging, with operations in 40 countries, over 500 production plants and over 100,000 employees. The new group has a unique and unrivaled ability to provide its customers – anywhere in the world – with the most diverse, innovative and sustainable range of renewable and recyclable packaging solutions. The company is listed on the New York Stock Exchange (NYSE), under the ticker ‘SW’ as of July 5, 2024. The company also has a standard listing on the London Stock Exchange (LSE) under the ticker ‘SWR’.
The stages of the merger
On June 13, WestRock Company announced that based on a preliminary vote count, shareholders had voted in favor of approving the transaction agreement and other proposals relating to the merger of Smurfit Kappa Group plc and WestRock. Pursuant to the terms of the transaction agreement entered into on 12 September 2023, Smurfit WestRock’s acquisition of Smurfit Kappa will take place by way of a scheme of arrangement under the Irish Companies Act 2014: Sun Merger Sub, LLC, a 100 subsidiary % subsidiary, will merge with and into WestRock, which will in turn become a wholly owned subsidiary of Smurfit WestRock.
During the Assembly in which the company awarded him the recognition of partner, Gianluca Castellini, CEO Smurfit Kappa Italy, expressed enthusiasm regarding the acquisition. The two companies specialized in packaging and also active in the Beauty segment create the largest listed global packaging partner in the world, with an adjusted turnover of 34 billion dollars (almost 32 billion euros), based on the 12 months to 30 June 2023. The former is a paper packaging company based in Ireland, while the latter is based in the US and specializes in fibre-based packaging solutions.
The company will have its global headquarters in Dublin, Ireland, while its American operations will be based in WestRock’s current headquarters in Atlanta, Georgia. Tony Smurfit, current CEO of Smurfit Kappa, will lead the new company as CEO, while Irial Finan, current president of Smurfit Kappa, will become president of the new company.
“The combination of Smurfit Kappa and WestRock creates a global group that combines the experience and know-how of both companies,” said Tony Smurfit, Chief Executive Officer of Smurfit Westrock. “We are convinced that this operation has led to the creation of the leading operator in the world and reference partner for all customers in the sustainable packaging sector. I am proud to have been chosen to lead this great team of people. We will have leading resources, a unique global footprint in both paper and corrugated, an excellent consumer and specialty packaging business, significant synergies and greater scalability to deliver value in the short, medium and long term .”
“The shareholders of Smurfit Kappa and WestRock have strongly supported the merger. Smurfit Westrock today has a unique geographic presence and unprecedented ability to deliver value to our Customers through our innovative industry solutions,” added Ken Bowles, Chief Financial Officer of Smurfit Westrock.
WestRock CEO David Sewell commented on the transaction by saying he looks forward to “working with Smurfit Kappa to build a leading global platform that leverages the strength of WestRock’s consumer portfolio, presents a truly complete offering of packaging solutions for customers and offers significant value to our customers and shareholders today and in the future.”
