WestRock Company has entered into a definitive agreement to acquire Cenveo Packaging, a leading provider of value-add folded carton and litho-laminated display packaging solutions with six facilities located in North America. Cenveo Packaging is a division of Cenveo, Inc. (NYSE:CVO). Cenveo Packaging has generated more than $190 million in revenue over the past 12 months.
"With attractive and complementary customers, markets and facilities, Cenveo Packaging will be an excellent addition to our consumer packaging business," said Steve Voorhees, chief executive officer 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 serves customers across North America with a focus on markets that value high-color printing and packaging capabilities, including food, beverage, pharma/nutraceutical, specialty tobacco and other consumer markets.
"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 vice president, Merchandising Displays and Folding Carton, Packaging Solutions, WestRock.
At closing, WestRock will pay a total consideration of approximately $105 million. The transaction, which provides for an election under section 338(h)(10) of the Internal Revenue Code of 1986, as amended, is expected to generate significant synergies and be accretive to earnings immediately. The transaction is anticipated to close in early 2016 following regulatory approval.