WestRock Announces Acquisition of SP Fiber Holdings

 

WestRock, Richmond, Vir., USA, announced on Tuesday (August 11) it entered into a definitive agreement to acquire SP Fiber Holdings, a producer of recycled containerboard and kraft and bag paper with mills located in Dublin, Georgia, and Newberg, Oregon. WestRock will also acquire the corporation's 48% interest in Green Power Solutions of Georgia (GPS). Dublin-based GPS is a renewable energy joint venture providing energy to Georgia Power and steam to the local paper mill. The total value of this transaction is $288.5 million.

"The Dublin and Newberg mills will balance the fiber mix of our mill system and the addition of kraft and bag paper will diversify our product offering," said Steve Voorhees, CEO of WestRock. "We expect to apply our operating capabilities to improve the cost structure of both mills. As a result, our mill system will be better positioned to serve the increasing demand for lighter weight containerboard and kraft paper."

SP Fiber produces containerboard and kraft and bag paper for end use in consumer and corrugated packaging. Made from 100% post-consumer recycled fiber, these products have earned FSC, SFI, and PEFC certifications.  

"We are thrilled to have the opportunity to supply the food service market with lighter weight paper for recycled, unbleached bags. Adding this modern recycled containerboard and kraft paper production provides us with efficiencies in our mill system that will enable us to more effectively serve our customers," said Jim Porter, president of the Paper Solutions division at WestRock. 

The transaction is expected to generate significant synergies and help increase earnings in the second half of fiscal year 2016. This transaction is subject to regulatory approval and will close after the regulatory process has concluded.

WestRock is a provider of paper and packaging solutions in consumer and corrugated markets. WestRock’s 42,000 team members support customers around the world from approximately 275 operating and business locations spanning North America, South America, Europe, and Asia.