WestRock agrees to acquire packaging company for $2.28 billion

Paper and packaging company WestRock Co. announced it had signed an agreement to buy a New York packaging company for a deal worth $2.28 billion.

The announcement comes one day after the company, whose headquarters are in Richmond, announced its plans to sell its home, health and beauty business unit for $1.025 billion to Silgan Holdings Inc.

The agreement includes paying $18 in cash per share of New York-based Multi Packaging Solutions International and the assumption of an estimated $873 million in debt.

Steve Voorhees, CEO of WestRock, said in a statement that the acquisition will expand WestRock’s portfolio through Multi Packaging Solutions’ complementary products in the health-care and consumer markets.

“The combination of WestRock and MPS creates opportunities to drive margin expansion and enhanced financial returns through a combination of increased integration and identified synergies,” Voorhees said.

The transaction will be financed through cash on hand and existing credit facilities.

The company plans to refinance existing debt.

Marc Shore, CEO and founder of Multi Packaging Solutions and Dennis Kaltman, president, will join WestRock following the transaction.

The deal, which is subject to regulatory approval and closing conditions, is expected to close in the third quarter of WestRock’s fiscal year.