RockTenn and Smurfit-Stone announced last week that it has reached an agreement which will see Georgia-based RockTenn acquire Smurfit-Stone Container Corp. The value of the transaction is approximately US$3.5 billion.
“RockTenn’s acquisition of Smurfit-Stone is another major step in our transformation of RockTenn to be the most respected company in our business with a laser focus on exceeding our customers’ expectations and creating long term shareholder value,” said RockTenn’s Chairman and Chief Executive Officer, James A. Rubright in a statement. “The containerboard and corrugated packaging industry is a very good business and U.S. virgin containerboard is a highly strategic global asset. With this acquisition, RockTenn’s fiber input ratio will be 55 percent virgin and 45 percent recycled. We believe this transaction provides the greatest possible career opportunities for our co-workers from both companies.”
RockTenn was founded in 1936 and employs over 10,000 people in 90 facilities across five countries, including Canada. This new acquisition will make the company the number two producer of containerboard in North America and the number two producer of coated recycled board.