Smurfit Kappa and WestRock have agreed to combine, the companies said on Tuesday, to create one of the world's largest paper and packaging producers worth nearly $20 billion.
The companies' combined adjusted revenue was about $34 billion for the year ended 30 June, which would make the new company, called Smurfit WestRock, the largest listed global packaging partner by revenue, the statement said.
Commenting on the combination, Tony Smurfit, CEO of Smurfit Kappa, said, “Smurfit WestRock will be the ‘Go-To’ packaging partner of choice for customers, employees and shareholders.
"We will have the leading assets, a unique global footprint in both paper and corrugated, a superb consumer and specialty packaging business, significant synergies, and enhanced scale to deliver value in the short, medium and long term.”
WestRock stockholders will get one new Smurfit WestRock share and $5 in cash for each share they hold, which works out to $43.51 per share, the statement said.
Ireland-based Smurfit had said last week that it was in talks with US -based WestRock.
Smurfit WestRock will be based in Ireland.
Smurfit, which operates in 22 European countries and 13 in South, Central and North America, is Europe's largest paper and packaging producer. WestRock is the second-largest packaging company in the US.
David Sewell, CEO of WestRock, added, "Smurfit Kappa shares our deep commitment to innovation across the packaging lifecycle, and we are confident that Smurfit WestRock will continue to lead the industry forward."