WestRock Company has entered into agreements to acquire substantially all of the assets of Plymouth Packaging, Inc. (“Plymouth”).
Plymouth is a corrugated packaging company that derives approximately 70% of its sales from its “Box on Demand” systems and corrugated fanfold, and 30% from traditional corrugated box packaging.
Plymouth currently supplies more than 100 customers with proprietary “Box on Demand” machines, manufactured by Panotec. As part of the transaction, WestRock will acquire Plymouth’s equity interest in Panotec and Plymouth’s exclusive right to distribute Panotec’s equipment in the United States and Canada.
The acquisition of Plymouth will further integrate the company’s containerboard system. WestRock currently provides one-third of the nearly 60,000 tons of containerboard used by Plymouth annually, and intends to fully integrate these tons after the transaction closes. WestRock expects additional containerboard integration opportunities as the Company serves this growing on-demand packaging market.
The transaction includes Plymouth’s fanfold corrugated facilities in Battle Creek, Michigan; Ft. Worth, Texas; and Mechanicsburg, Pennsylvania; and all of the company-owned “Box on Demand” machines located in customers’ facilities. The transaction is subject to customary closing conditions.
WestRock Company is a leading provider of differentiated paper and packaging solutions.