WestRock acquires Multi Packaging Solutions International
Monday WestRock sold off what was know as its home, health, and beauty business. Tuesday the company bought Multi Packaging Solutions International.
“With the announced sale of the Home, Health and Beauty business and the announced acquisition of Multi Packaging Solutions, we are executing on our strategy and are strengthening our packaging portfolio,” WestRock CEO Steve Voorhees says in press release about the packaging company’s Q1 financials, which also came out this week.
The company is buying Multi Packaging Solutions International for $2.28bn, an enterprise value that includes $837m of debt.
MPS specialized in print-based packaging solutions. The New York-based company got its start in 2005 and serves the cosmetics, beverage, confectionary, and health care markets, among others. Marc Shore, CEO of MPS and Dennis Kaltman, the company’s president, are part of the deal and will be working with WestRock going forward.
“The MPS family is excited to join WestRock and take this logical next step in the progression of our company,” says Shore, who also founded MPS. “Becoming part of WestRock greatly enhances the portfolio of products we can offer our customers and provides additional scale, resources and capabilities.”
WestRock announced on Monday that the company had reached a definitive agreement with Silgan Holdings. Silgan will buy WestRock’s home, health, and beauty business for $1.025bn cash. The business comprises over a dozen manufacturing facilities across four continents where closures, triggers, pumps, and sprayers are made.
“We’re particularly pleased with this acquisition as it’s a business we’ve literally had our eye on for over a decade,” Tony Allott, Silgan’s CEO, said on a call Monday (as plasticsnews.com reports).
Today the company also released Q1 financial results. Net sales for the quarter came in at $3,447.2m, down nearly $24m from the same quarter last year. Commenting on the results Voorhees says, “Our team executed well against our strategy and delivered a solid quarter, and we continued to deliver on our productivity goals which helped to offset the impact of cost inflation and other factors.”
He’s focused on repositioning the business and believes the company is on track: “We continue to make progress in our effort to enhance our focus on our core paper and packaging businesses.”