About Smurfit Westrock: A New Giant of Sustainable Packaging

The completion of a merger between Smurfit Kappa and WestRock has created what is being called the largest sustainable packaging company in the world.

Smurfit Westrock, which now has a primary listing on the NYSE and a secondary listing on the LSE, was launched 10 months after the merger was revealed.

Tony Smurfit, Group CEO & President, Smurfit Westrock, said: “I am honoured to lead as CEO for our newly combined company Smurfit Westrock.”

Tony said it is an “extraordinary milestone in our company’s journey”, adding: “This momentous occasion is a testament to the dedication and hard work of our incredible teams.

“As one united company, we are positioned to deliver even more value and innovation to our customers, driving our shared vision of a sustainable future.”

He said: “I am deeply grateful to our employees, shareholders and partners for their unwavering support. I also want to mention the commitment of my own family and the generations that went before us, especially my father and grandfather.

“Together, we are poised to lead the way in paper based sustainable packaging. Here’s to a bright and promising future as Smurfit Westrock.”

About Smurfit Westrock

The new business is a merger of two industry heavyweights, which together create a huge company with:

• More than 100,000 employees
• Combined annual revenue of US$34bn in 2023
• 63 mills in 40 countries and six continents
• More than 560 packaging converting operations
• Over 300,000 acres of forested land
• Capacity of 24 million tons of paper
• 15 million tons of recycled fibre consumed in 2023
• Capacity of 20 million tons of packaging.

Tony said: “Combining Smurfit Kappa and WestRock creates a world-leading sustainable packaging player, bringing together a tremendous depth of experience and expertise from both companies.

“We believe that this combination has created the go-to leader and partner of choice in sustainable packaging. I’m proud to be chosen to lead this great team of people.”

Ken Bowles, Smurfit Westrock Chief Financial Officer, said: “The shareholders of Smurfit Kappa and WestRock have overwhelmingly supported our combination.

“Smurfit Westrock has a unique geographic footprint and through our industry-leading applications, an unparalleled ability to provide value for our customers.”

What is the intention of the merger?

The strategic rationale behind the merger is to leverage the complementary strengths of the companies, enabling them to offer a broader range of renewable, recyclable and biodegradable packaging solutions.

The aim is to capitalise on the growing demand for sustainable packaging, which is driven by the global shift away from plastics​.

The combined company expects to achieve significant operational improvements, including:

• Enhanced cross-selling opportunities, particularly in consumer and corrugated packaging
• Expanded market reach in North America and Europe, where the focus on replacing plastics with sustainable materials is particularly strong
• Leveraging innovative machinery and solutions to offer comprehensive primary, secondary and tertiary packaging​​.

The Smurfit Kappa back-story

The company was founded as a box-maker in the Rathmines area of Dublin, Ireland, in 1934.

It was bought in 1938 by Jefferson Smurfit, trading afterwards under his name.

Jefferson Smurfit was listed on the Irish Stock Exchange in 1964 and acquired a partial interest in Time Industries, a Chicago-based paper and packaging company, in 1974.

The company grew under the leadership of the founder's son, Sir Michael Smurfit, who became CEO in 1977.

It merged its 46%-owned US business with Chicago-based Stone Container Corporation to form Smurfit-Stone Container Corporation in 1998.

Jefferson Smurfit was the subject of a management buyout financed by Madison Dearborn Partners, Cinven Limited and CVC Capital Partners in 2002.

It merged with Kappa Packaging in 2005, changing its name to Smurfit Kappa and was the subject of an initial public offering in 2007.

In 2012 it bought Orange County Container, a US-based packaging company, for US$340m. In 2016 it acquired two Brazilian companies for US€186m.

WestRock’s background

American corrugated packaging company WestRock was formed in July 2015 by the merger of MeadWestvaco and RockTenn.

Ahead of its merger with Smurfit Kappa, WestRock was the 2nd largest American packaging company, with US$21.3bn in annual revenue and more than 50,000 team members in more than 300 locations in 30 countries around the world.

The company is headquartered in Sandy Springs, Georgia.

In October 2015, WestRock bought SP Fiber Holdings, Inc. and in January 2016, it acquired Cenveo Packaging for US$105m.

In March 2017 WestRock snapped up Star Pizza Box, the largest US manufacturer and distributor of pizza boxes before in April completing the sale of its dispensing systems operations for US$1.025bn to Silgan Holdings.

The rapid business growth continued in June 2017, with the purchase of Multi Packaging Solutions International (MPS) for an enterprise value of US$2.28bn.

MPS had 59 locations across North America, Europe and Asia and enhanced Westrock's print, graphics and design capabilities for more penetration in spirits, confectionery, beauty and cosmetics packaging.

In January 2018, the company acquired Plymouth Packaging, and bought pulp and paper company Kapstone in November 2018.

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