The assets to be acquired include a corrugator and the corrugated converting operations located in Wheatley Heights, NY, and certain related fulfillment assets located in Saddle Brook, NJ.
“Island Container and Combined Container have longstanding relationships with customers in cosmetic, pharmaceutical and food markets in the northeastern US, and we look forward to continuing these relationships,” said Steve Voorhees, chief executive officer of WestRock. “This acquisition will enable us to integrate more than 80,000 tons of containerboard into our corrugated packaging business.”
WestRock will pay total consideration representing an EBITDA multiple of less than 4.5 times on a post-synergy basis. The consideration will be made in cash. The transaction is subject to customary closing conditions.