WestRock to acquire MPS

Packaging Solutions

WestRock Company and Multi Packaging Solutions have announced that a definitive agreement has been reached for WestRock to acquire all of the outstanding shares of MPS.

Founded in 2005, and headquartered in New York, MPS is a recognised leading global provider of print based specialty packaging solutions. MPS' differentiated product offering includes premium folding cartons, inserts, labels, and rigid packaging, and it serves a diverse, blue chip customer base, primarily in the growing consumer and healthcare sectors. The company serves its customers on a global basis through 59 locations across North America, Europe and Asia.

‘The acquisition of MPS is an important step forward that advances our strategy and will create significant value for our customers, employees and shareholders,’ said Steve Voorhees, chief executive officer of WestRock. ‘Through this transaction, we will add a leader in the value added packaging sector that strengthens our differentiated portfolio of paper and packaging solutions. Led by its talented management team, MPS shares our commitment to provide our customers with differentiated packaging solutions that help them win in the marketplace.

‘The combination of WestRock and MPS creates opportunities to drive margin expansion and enhanced financial returns through a combination of increased integration and identified synergies.

‘Overall, this is a highly strategic transaction consistent with our balanced capital allocation strategy that we expect will generate compelling growth and returns. We have the right team in place with deep integration experience to fully realize this opportunity.’

‘The MPS family is excited to join WestRock and take this logical next step in the progression of our company,’ said Marc Shore, chief executive officer and founder of MPS. ‘Becoming part of WestRock greatly enhances the portfolio of products we can offer our customers and provides additional scale, resources and capabilities.’

MPS brings strong complementary print, graphics and design capabilities that will enhance WestRock's presence in the growing healthcare and consumer markets that includes spirits, confectionery, beauty and cosmetics. These markets collectively represented 90% of MPS revenue in fiscal 2016. The acquisition will also further broaden WestRock's differentiated product portfolio, and significantly strengthens its presence in attractive markets that will allow its brands to differentiate themselves with new applications and new technologies.

MPS is one of the largest non-integrated consumers of bleached paperboard in the world, using approximately 225,000 tonnes of paperboard each year in its production facilities.