By PrintAction Staff
By PrintAction Staff
WestRock Company entered into a definitive agreement worth approximately US$105 million to acquire Cenveo Packaging, which focuses on producing folded carton and litho display packaging. The deal involves six Cenveo facilities located in North America (U.S., Canada and Dominican Republic), which generated more than US$190 million in revenue over the past 12 months.
Cenveo Packaging’s most prominent Canadian faclity, Cenveo MM&T, is located in Mississauga and was the subject of PrintAction‘s May 2015 cover story (read article), following the facility’s installation of a massive 14-unit Heidelberg press.
WestRock was formed after the July 2015 merger of MeadWestvaco Corporation and Rock-Tenn Company, which made WestRock one of the world’s largest paper and packaging companies with US$15 billion in annual revenue and 42,000 employees in 30 countries.
“With attractive and complementary customers, markets and facilities, Cenveo Packaging will be an excellent addition to our consumer packaging business,” said Steve Voorhees, CEO of WestRock. “By combining our operating expertise in folding cartons and integrating WestRock paperboard with Cenveo Packaging’s packaging and printing capabilities, we will be able to better serve our customers while generating significant synergies and performance improvements.”
Cenveo Packaging focuses on markets like food, beverage, pharma/nutraceutical, specialty tobacco and other consumer markets that use high-value packaging.
“We are excited to be able to offer customers a wider network of facilities and a more diverse set of capabilities, including MiraFoil, cold foil and low migration ink systems, each of which will help our customers to be even more successful in their markets,” said Craig Gunckel, Executive VP, Merchandising Displays and Folding Carton, Packaging Solutions, WestRock.
At closing, WestRock will pay a total consideration of approximately US$105 million. The transaction is anticipated to close in early 2016 following regulatory approval.
“The agreement brings conclusion to the review process of our Packaging Business which we started in the summer of 2015,” said Robert G. Burton, Sr., Chairman and Chief Executive Officer, Cenveo Inc. “The sale allows the company to focus management’s efforts on its core operations, specifically our envelopes, labels, and commercial print segments where we hold leading market positions.”