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WestRock to Acquire Remaining Interest in Mexican Paper, Packaging Maker Grupo Gondi.

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Vincent

MANews-(C)2009-2022

US-based paper and packaging solutions provider WestRock Company (NYSE: WRK) has entered into an agreement to acquire the remaining 67.7% stake it does not already own in Grupo Gondi for USD 970m, plus the assumption of debt, representing an estimated implied enterprise value of USD 1.763bn, the company said.

Upon completion of this transaction, WestRock will further enhance its leading position in the growing Latin American containerboard, paperboard and consumer and corrugated packaging markets.

Grupo Gondi operates four paper mills, nine corrugated packaging plants and six high graphic plants throughout Mexico, producing sustainable packaging for a range of end markets in the region.

The tuck-in acquisition will provide WestRock further geographic and end market diversification as well as position the company to continue to grow in the attractive Latin American market.

WestRock currently owns 32.3% of Grupo Gondi, and this transaction will secure the remaining 67.7%. This acquisition is expected to be immediately accretive to earnings, subject to purchase accounting adjustments.

Grupo Gondi's calendar year 2022 EBITDA is estimated to be approximately USD 200 to USD 210m.

WestRock expects to achieve an incremental USD 60m in annual synergies by year three following the closing.

The transaction firmly...

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