RockTenn andSmurfit-Stone Container Corp.have approved a definitive agreement announced January 23 under which Smurfit-Stone will become a wholly owned subsidiary of RockTenn. The aggregate equity value of the transaction is approximately $3.5 billion.
This strategic transaction, unanimously approved by the Boards of Directors of both companies, will create a $9 billion leader in the North American paperboard packaging market. Upon closing, RockTenn will maintain its headquarters in Norcross, Ga.
Smurfit-Stone is one of the industry's leading integrated containerboard and corrugated packaging producers and one of the world’s largest paper recyclers. Smurfit-Stone has manufacturing mill capacity of 7.0 million tons, and when combined, RockTenn will have 9.4 million tons of total production capacity, including 7.5 million tons of mill production in the attractive containerboard market.