WestRock to Acquire Cenveo Packaging in $105 Million Deal

 

Paper and packaging firm WestRock (Richmond, Va., USA) has agreed to acquire Cenveo Packaging in a $105 million deal. The transaction is anticipated to close in early 2016 following regulatory approval.

Cenveo Packaging (Stamford, Conn.) operates six facilities across North America where it produces folded carton, shrink sleeve, and litho-laminated display packaging. Cenveo Packaging, a unit of print company Cenveo, has generated more than $190 million in revenue during the past year. Its products are supplied to food, beverage, pharma/nutraceutical, specialty tobacco, and other consumer markets.

"With attractive and complementary customers, markets and facilities, Cenveo Packaging will be an excellent addition to our consumer packaging business. By combining our operating expertise in folding cartons and integrating WestRock paperboard with Cenveo Packaging's packaging and printing capabilities, we will be able to better serve our customers while generating significant synergies and performance improvements," said WestRock CEO Steve Voorhees.

 

"The agreement brings conclusion to the review process of our Packaging Business which we started in the summer of 2015," said Robert G. Burton, Sr., chairman and CEO, Cenveo Inc. "The sale allows the company to focus management's efforts on its core operations, specifically our envelopes, labels, and commercial print segments where we hold leading market positions." 

In addition to Cenveo Packaging's facilities in the U.S., Canada and Dominican Republic, the acquisition also includes strategic sourcing partnerships in Asia and the Caribbean.

"We are excited to be able to offer customers a wider network of facilities and a more diverse set of capabilities, including MiraFoil, cold foil and low migration ink systems, each of which will help our customers to be even more successful in their markets," said WestRock merchandising displays, folding carton, and packaging solutions EVP Craig Gunckel.