Smurfit Kappa and WestRock have agreed a merger deal, which is set to create one of the world’s largest packaging producers, estimated to be worth nearly $20bn.

In an announcement today, the pair confirmed that the combination of Smurfit Kappa and the second largest US packaging firm, will create Smurfit WestRock.

Smurfit Kappa, headquartered in Dublin and listed on the FTSE 100, and WestRock, which is listed on S&P 500 and is headquartered in Atlanta, Georgia, both recorded an adjusted revenue and adjusted EBITDA of $34bn and $5.5bn respectively on 30 June 2023.

As a result of the merger, WestRock stockholder will receive one new Smurfit WestRock share and $5 in cash for each share they hold, which works out to $43.51 per share.

Smurfit Kappa shareholders will receive one new Smurfit WestRock share for each share they hold.

Smurfit WestRock will be domiciled in Ireland with its global headquarters based in Dublin, with its North and South American operations headquartered in Atlanta.

Smurfit Kappa operates in 22 European countries, including the UK, and is the continent’s largest paper and packaging producer. It also operates in 13 countries in the Americas.

The deal is expected to be completed in the second quarter of 2024.

Chief executive officer (CEO) at Smurfit Kappa, Tony Smurfit, said: "This incredibly exciting coming together of our two great companies is a defining moment within the global packaging industry. 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."

CEO at WestRock, David Sewell, added: "We look forward to working with Smurfit Kappa to build a leading global platform that harnesses the strength of WestRock’s consumer portfolio, presents a truly comprehensive offering of packaging solutions for customers and delivers meaningful value to our shareholders today and into the future.

"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. I’m grateful to WestRock’s team members, whose hard work has made this combination possible, and excited for the many opportunities that will arise from becoming part of the partner of choice in our industry."

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