WestRock Inks Deal with SP Fiber Holdings for $288.5M
WestRock has announced that it entered a definitive agreement to acquire SP Fiber Holdings for a total value of $288.5 million. The Georgia-based company produces 100 percent post-consumer recycled fiber containerboard and kraft and bag paper for end use in consumer and corrugated packaging.
"We are thrilled to have the opportunity to supply the food service market with lighter weight paper for recycled, unbleached bags,” Jim Porter, president of paper solutions at WestRock, said in a press release. “Adding this modern recycled containerboard and kraft paper production provides us with efficiencies in our mill system that will enable us to more effectively serve our customers.”
Per the agreement, WestRock will not only acquire SP Fiber and its two mills located in Georgia and Oregon, but will acquire SP Fiber’s interest in Green Power Solutions of Georgia, equaling 48 percent of the company. According to Steve Voorhees, WestRock's CEO, WestRock will be able to apply its operating capabilities to “improve the cost structure of both mills.” An improvement in cost structure will allow the company to better serve the demand for lighter weight containerboard and kraft paper.
The transaction is subject to regulatory approval and will close after the regulatory process has concluded.
