SMURFIT TO ACQUIRE WESTROCK: RICHMOND PLANT PART OF $11BN DEAL
WestRock Oceania, the 200 employee former Hannapak carton printing operation, which was sold by the Hanna family to US operation WestRock in 2017, is set to become part of the global Smurfit Kappa business, following a giant US$11bn acquisition.
When it goes through in Q2 next year (subject to approvals), the deal will create the world's biggest paper and packaging company, and will see the 200 staff at the NSW plant joining what will be 100,000 employees at the combined group, which will operate 500 converting operations and 67 mills producing 23 million tonnes of board annually.
The new Smurfit WestRock entity will start operations with a combined US$34bn in revenue, and US$5bn EBITDA. The company will provide corrugated and consumer packaging, delivering a broad portfolio of packaging solutions serving to what it says are diverse, growing end-markets.
Based in Richmond on the northern outskirts of Sydney, WestRock is the country’s biggest manroland 900 house, running a quartet of the giant sheetfed offset presses around the clock.
Hanna Group was founded in 1957 by Charles Hanna Snr and his son, Charles Hanna, who started out manufacturing and selling printed advertising balloons from a small factory behind their home in Carlingford, NSW. It became Australia’s largest privately-owned, family-operated folding cartons company, operating from a 30,000sqm facility, printing folding carton for major brands. WestRock paid Hanna $75m for the business six years ago. The founder’s grandson Sam Hanna continued with the business when it was sold.
Charles Hanna passed away on Boxing Day 2021. He had been awarded an Order of Australia Medal in 2018, for his services to business and charity.
The new Smurfit WestRock will have its headquarters in Dublin. Its CEO Tony Smurfit is the current CEO of the Year. Commenting on the new combination, David Sewell, CEO of WestRock, said, “We look forward to working with Smurfit Kappa to build a leading global platform that harnesses the strength of WestRock’s consumer portfolio, presents a truly comprehensive offering of packaging solutions for customers and delivers meaningful value to our shareholders today and into the future. Smurfit Kappa shares our deep commitment to innovation across the packaging lifecycle, and we are confident that Smurfit WestRock will continue to lead the industry forward. I’m grateful to WestRock’s team members, whose hard work has made this combination possible, and excited for the many opportunities that will arise from becoming part of the partner of choice in our industry.”
Irial Finan, chair of Smurfit Kappa, said, “We are pleased to create Smurfit WestRock. We believe that all shareholders will benefit through ownership of a world-leading, sustainable packaging business; the combination of two of the industry’s most experienced teams with a proven track record of delivery; and a diverse product portfolio and compelling innovation offering.”
Alan Wilson, chair of WestRock, said, “This combination will enable WestRock to advance its key growth initiatives on a global scale while providing our shareholders with the opportunity to participate meaningfully in the combined company’s significant upside value potential.”