WestRock To Sell Ownership Interest in RTS Packaging, LLC to Sonoco; Agrees to Sell URB Mills in Illinois and Indiana to Ox Industries

WestRock Company [NYSE: WRK], a leading provider of sustainable paper and packaging solutions, today announced it has entered into a definitive agreement to wholly divest its ownership interest in RTS Packaging, LLC, to joint venture partner Sonoco Products Company [NYSE: SON] for $330 million, subject to customary price adjustments. In addition, the Company has signed a definitive agreement to sell its uncoated recycled paperboard (URB) mills in Eaton, Indiana, and Aurora, Illinois, to Ox Industries for $50 million.

WestRock’s mill in Chattanooga, Tennessee, which supplies RTS with URB, is included in the RTS Packaging transaction. This mill will be strategically integrated into the Sonoco Products Company portfolio. The transaction is expected to close in the first half of 2023, subject to the satisfaction of customary closing conditions, including regulatory approval.

The Eaton and Aurora mills produce URB, which is not a priority product for WestRock, and are optimized assets for Ox Industries, a supplier and manufacturer of recycled paperboard products. The transaction is expected to close in late 2022 or early 2023.

When the transaction closes, WestRock team members will transition to employment with Sonoco or Ox Industries, as applicable.

“These divestitures align with WestRock’s commitment to optimize its portfolio and focus our strategy on key end markets,” said David B. Sewell, chief executive officer. “I want to thank the teammates in RTS Packaging and our Chattanooga, Eaton and Aurora mills for their numerous contributions to our success over the years. Looking forward, we remain committed to leveraging the power of our broad, diverse portfolio of sustainable paper and packaging solutions to serve our customers and provide value to our shareholders.”
https://ir.westrock.com/press-releases/press-release-details/2022/WestRock-To-Sell-Ownership-Interest-in-RTS-Packaging-LLC-to-Sonoco-Agrees-to-Sell-URB-Mills-in-Illinois-and-Indiana-to-Ox-Industries/default.aspx

Related Posts

Mondi completes merger of Mondi Tire Kutsan and Mondi Olmuksan in Turkey

Further to an announcement made in July 2022, Mondi confirms that all conditions have been satisfied and the merger of Mondi Tire Kutsan Kağıt ve Ambalaj Sanayi a.ş. and Mondi Olmuksan Kağıt ve Ambalaj Sanayi Anonim Şirketi will come into effect from 30 September 2022. Mondi currently holds 84.65% of the shares of Mondi Turkey Oluklu Mukavva Kağıt ve Ambalaj Sanayi A.Ş. . The new entity Mondi Turkey Oluklu Mukavva Kağıt ve Ambalaj Sanayi A.Ş., is part of Mondi’s Corrugated Packaging business unit. Mondi Turkey Oluklu Mukavva Kağıt ve Ambalaj Sanayi A.Ş. operates a network of nine corrugated solutions plants across the country, a containerboard mill in Tire and a waste paper collection facility in Adana. Mondi Turkey Oluklu Mukavva Kağıt ve Ambalaj Sanayi A.Ş. employs more than 1,600 people and has a listing on the Istanbul Stock Exchange (BIST).

American Forest & Paper Association Releases February 2018 Containerboard Report

Containerboard production was down 3.0 percent compared to February 2017 and down 1.1 percent year-to-date. The month-over-month average daily production compared to January 2018 was 3.2 percent lower. The containerboard operating rate was 94.1 percent, or 3.1 percentage points lower than the same month last year. Production for exports was 6.0 percent lower than February 2017 and 8.4 percent lower year-to-date.

With Pet Ownership on the Rise, the Pet Food and Supplies Industry is Barking up the Right Side of the Tree

It’s no secret that the last few years have had their challenges – tightening economic conditions, supply chain constraints and the ongoing global pandemic to name a few. One of the bright spots for many was the opportunity to welcome a new four-legged family member into their home, – or simply spending more time spoiling their furry friends. With increased time at home, pet ownership skyrocketed, - as did the need for pet essentials. It makes sense that the pet food and supplies industry has experienced continuous growth. In fact, by 2026, U.S. households are expected to provide homes to roughly 195 million cats and dogs alone. As people continue to bring new pets into the home at an increasing rate the demand for pet supplies (and pet food and medicine in particular) naturally continues to increase.
Back To Top
×Close search
Search