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The parties expect to close the transaction in early April.
After the closing, Grupo Gondi will have 13 plants including three WestRock corrugated packaging facilities in Mexico.
WestRock, is a leader in the paper and packaging industry, and will contribute three plants located in Mexicali, Monterrey and Queretaro, and a cash contribution in exchange for a 25% equity participation in Grupo Gondi.
As the majority shareholder in this joint venture, Gondi's management team, led by Eduardo Posada, will be responsible for the management of the joint venture. WestRock will offer technical and commercial support, and will work with Gondi to support multinational customers located in Mexico. With this integration Gondi Group will employ approximately 6,800 people.
"With this authorization Gondi expands its presence in the Mexican market by offering better alternatives to our customers with advanced technology and an expanded portfolio of solutions for paper packaging. We have a proven ability to provide our customers with an excellent service level and innovation. Through this partnership, we will continue our growth and expand our national presence," said Eduardo Posada, chief executive officer of Grupo Gondi.
"Grupo Gondi offers packaging solutions through a balance of robust and structural design and high graphics, combined with constant innovation that helps to highlight the brands of our customers. In Mexico, we are the packaging company that goes beyond a traditional box to a packaging solution that helps sell the product it contains," continued Posada.
"We are pleased to join our WestRock paperboard packaging operations in Mexico with Grupo Gondi," said Steve Voorhees, chief executive officer of WestRock. "With this new joint venture, WestRock will accelerate the expansion of our business in this region with a partner that shares our commitment to providing innovative, high-quality packaging solutions for our customers."
"With this step Grupo Gondi reaches one of its main goals in establishing this strategic alliance with WestRock and continues to strengthen its value as the best choice of packaging in Mexico. Every day we are more confident and optimistic about the opportunities to grow this business together," said Alejandro González Cimadevilla, Grupo Gondi's chairman of the board.
