WestRock announces acquisition of SP Fiber Holdings, Inc.
WestRock Company (westrock.com) has entered into a definitive agreement to acquire SP Fiber Holdings, Inc. ("SP Fiber"), a producer of recycled containerboard and kraft and bag paper with mills located in Dublin, Georgia, and Newberg, Oregon. WestRock will also acquire SP Fiber's 48 percent interest in Green Power Solutions of Georgia, LLC (GPS). GPS is a renewable energy joint venture providing energy to Georgia Power and steam to the paper mill in Dublin. The total value of this transaction is $288.5 million.
"The Dublin and Newberg mills will balance the fiber mix of our mill system and the addition of kraft and bag paper will diversify our product offering," says Steve Voorhees, chief executive officer of WestRock. "We expect to apply our operating capabilities to improve the cost structure of both mills. As a result, our mill system will be better positioned to serve the increasing demand for lighter weight containerboard and kraft paper."
SP Fiber produces containerboard and kraft and bag paper for end use in consumer and corrugated packaging. Made from 100 percent post-consumer recycled fiber, these products have earned FSC, SFI and PEFC certifications.
"We are thrilled to have the opportunity to supply the food service market with lighter weight paper for recycled, unbleached bags. Adding this modern recycled containerboard and kraft paper production provides us with efficiencies in our mill system that will enable us to more effectively serve our customers," says Jim Porter, president, Paper Solutions, WestRock.
The transaction is expected to generate significant synergies and be accretive to earnings in the second half of fiscal year 2016. The transaction is subject to regulatory approval and will close after the regulatory process has concluded.