WestRock to acquire KapStone

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WestRock Co (NYSE: WRK) announced on January 29 that had agreed to purchase KapStone Paper and Packaging Corp (NYSE: KS) in a cash and stock deal worth approximately $5 billion. WestRock plans to finance this transaction through the issuance of new debt and expects to be able to refinance KapStoneÕs debt. This acquisition allows WestRock to rid itself of one of its primary competitors and to become more competitive with International Paper, the largest packaging company in the nation. KapStone shareholders are being offered either $35 per share in cash or 0.4981 WestRock shares per KapStone share. The deal is expected to generate savings of approximately $200 million by the end of fiscal 2021 and to immediately increase WestRockÕs adjusted earnings and cash flow. Rothschild & Co and Moelis & Co LLC are KapStoneÕs financial advisers with Lazard and Wells Fargo serving as WestRockÕs financial advisers. WestRock also received legal counsel from Gibson Dunn.

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