Telephone: +1 770 448-2193 Address Line 1: 1000 Abernathy Road NE City: ... WestRock completes acquisition of KapStone WestRock. The deal, which is set to close in the quarter ending Sept. 30, is expected to immediately add to WestRock’s adjusted earnings and cash flow and generate savings of about $200 million by the end of fiscal 2021, the companies said.KapStone’s shares jumped about30 percent to $34.48 at mid-afternoon, while those of WestRock were down 2.8 percent at $68.31.WestRock, created in 2015 by the $16 billion merger of MeadWestvaco and Rock-Tenn, said it expects the deal to boost margins in its North American corrugated packaging business, used in the industrial and consumer end-markets.Separately, WestRock said sales in its first quarter jumped about 13 percent on higher price and shipments.“This is one of the last opportunities to consolidate in an industry that’s already becoming very well-structured,” D.A. Davidson & Co analyst Steven Chercover said.By adding mills, WestRock would be grabbing some of the scarce assets, Chercover added.Norcross, Georgia-based WestRock said the deal would help it expand in the western United States and broaden its portfolio of paper grades, allowing it to tap into the kraft bag market when plastic is being banned.WestRock said the deal was valued at about $4.9 billion, including assumption of KapStone’s net debt of about $1.36 billion.Northbrook, Illinois-based KapStone, which produces containerboard, unbleached kraft paper and corrugated products, will be integrated into WestRock’s corrugated packaging business.The company said it would fund the deal through issuance of new debt under a fully committed financing package and expects to refinance KapStone’s debt.Reporting by Arunima Banerjee in Bengaluru; Editing by Sriraj KalluvilaThe company on Monday offered KapStone shareholders the right to receive $35 per share in cash, or elect to get 0.4981 WestRock shares, a premium of 32 percent to Capstone’s Friday close.The equity value is based on 98.7 million diluted outstanding shares of KapStone as of Sept. 30, according to Reuters calculation.Lazard and Wells Fargo are WestRock’s financial advisers while Rothschild & Co and Moelis & Co LLC advised KapStone. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. WestRock cautions readers that a forward-looking statement is not a guarantee of future performance, and actual results could differ materially from those contained in forward-looking statements.

The link to the External Site is provided for convenience purposes only.In addition to disclosing results determined in accordance with GAAP, WRK may also disclose certain non-GAAP and pro forma non-GAAP results of operations, including certain ratios, operational and miscellaneous data, as well as net income, diluted earnings per share, operating expenses, and operating income that make certain adjustments or exclude certain charges and gains that are outlined in the schedules included in this website. News Connect. WRK and Virtua also take no responsibility for third party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data.The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. Wells Fargo also acted as a financial advisor to WestRock and is the agent for a syndicate of banks that provided the financing for the transaction. They align their goals with yours. Packaging manufacturer WestRock has acquired paper and corrugated packaging producer KapStone, in a deal worth approximately $4.9 billion. Additional information and other factors are contained in WestRock’s filings with the Securities and Exchange Commission (“SEC”).

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