Norcross, Georgia, USA 24 May 2017 -- (GLOBE NEWSWIRE) -- WestRock Company (NYSE:WRK) today announced that it has entered into a definitive agreement to acquire certain operations of U.S. Corrugated, a large independent manufacturer of corrugated products for packaging and displays.

WestRock will acquire five corrugated converting facilities in Ohio, Pennsylvania, and Louisiana from U.S. Corrugated, through which it provides a comprehensive suite of products and services to customers in a variety of end markets, including food & beverage, pharmaceuticals and consumer electronics. WestRock will not acquire U.S. Corrugated's facilities in California, Georgia, and in Ashland, Ohio, nor its affiliates in New Jersey and Tennessee.

"This acquisition will enhance our capabilities to serve customers across the Midwest, increase our integration and improve the margins of our corrugated packaging business," said Steve Voorhees, chief executive officer of WestRock. "We will be pleased to have the U.S. Corrugated employees at these five facilities join WestRock."

"When the transaction closes, we expect to realize significant synergies from supply chain optimization, better procurement, and integrating approximately 105,000 tons of the containerboard converted annually by the acquired facilities and another 50,000 tons under a long-term contract with a newly created company formed from the remaining assets of U.S. Corrugated," said Jeff Chalovich, president, Corrugated Packaging, WestRock.

WestRock will pay a total consideration of approximately $192 million, representing an EBITDA multiple of 5 times on a post-synergy basis. The consideration includes a combination of cash and WestRock common stock. The transaction is expected to be accretive to earnings in year one, and is expected to close in June 2017.

Forward-Looking Statements

This release contains forward-looking statements that are based on management's current views and assumptions and are typically identified by words or phrases such as "may," "will," "could," "should," "would," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "prospects," "potential" and "forecast," and other words, terms and phrases of similar meaning. Forward-looking statements include statements such as that (i) the transaction with U.S. Corrugated offers significant synergy opportunities through containerboard integration, increased production and improved performance and will expand WestRock's reach into attractive regional markets; (ii) the acquisition will enhance WestRock's capabilities to serve customers across the Midwest, increase its integration and improve the margins of its corrugated packaging business; (iii) WestRock expects to realize significant synergies from supply chain optimization, better procurement, and integrating approximately 105,000 tons of containerboard converted annually by the acquired facilities and another 50,000 tons under a long-term contract with a newly created company formed from the remaining assets of U.S. Corrugated; and (iv) the transaction is expected to be accretive to earnings in year one and to close in June 2017. Actual results may differ materially. Factors that may affect actual results include, but are not limited to, economic, competitive and market conditions generally, volumes and price levels of purchases by customers; and competitive conditions in WestRock's businesses and possible adverse actions of their customers, competitors and suppliers. Please refer to the cautionary statements set forth in Item 1A of WestRock's Annual Report on Form 10-K for the year ended September 30, 2016 and Quarterly Reports on Form 10-Q for the quarters ended December 31, 2016 and March 31, 2017. WestRock undertakes no duty to update forward-looking statements.

About WestRock

WestRock (NYSE:WRK) partners with our customers to provide differentiated paper and packaging solutions that help them win in the marketplace. WestRock's 36,000 team members support customers around the world from more than 250 operating and business locations spanning North America, South America, Europe and Asia. Learn more at www.westrock.com.