Ireland’s mill group and packaging manufacturer Smurfit Kappa has entered merger discussions with US packaging business WestRock.
If the discussions succeed, a new company Smurfit WestRock will be created.
The new company would be domiciled in Ireland with its global headquarters to be based in Dublin. Its North and South American operations would be based out of Atlanta, Georgia. It would be listed on the New York Stock Exchange.
As a result of combining the two companies, existing shareholders of WestRock would receive consideration of primarily shares of the new combined group.
The boards of Smurfit Kappa and WestRock believe that the combined group would create a global leader in sustainable packaging across 42 countries.
Combined revenue for the two companies as of 30 June 2023 is $34 billion (£27.1 billion) and adjusted EBITDA of $5.5 billion (£4.39 billion). It is expected that synergy savings of $400 million (£319 million) could be made in the first year.
