WestRock to take full ownership of Mexican packaging firm Grupo Gondi
WestRock Company, a paper and packaging solutions provider, has agreed to acquire the remaining stake of 67.7% in Grupo Gondi, a Mexico-based manufacturer of recycled paper and cardboard packaging, for a price of $970 million.
The consideration includes the assumption of the latter’s debt.
The deal gives an estimated implied enterprise value of $1.763 billion for Grupo Gondi.
Alejandro González Cimadevilla — Grupo Gondi president and chairman of the board said: “WestRock and Grupo Gondi have been great joint venture partners over the past six years, working together to provide outstanding service and innovation for our customers.
“Becoming part of WestRock, with its scale, geographic footprint, and customer-focused solutions, will further enhance our ability to provide complete packaging solutions for our customers.”
After the closing of the deal, WestRock Company expects to further improve its position in the growing containerboard, corrugated, paperboard and consumer packaging markets in Latin America.
Grupo Gondi has four paper mills, six high graphic plants, and nine corrugated packaging plants in Mexico through which it produces sustainable packaging for a variety of end markets in the region.
Besides, the acquisition will give more geographic and end market diversification for WestRock Company apart from positioning it to continue to expand in the Latin American market.
David B. Sewell — WestRock Company CEO said: “Acquiring the remaining interest in Grupo Gondi is the next strategic step in our broader North American paper and packaging expansion strategy.
“As onshoring continues to grow in the region, WestRock will be well positioned to meet this growing demand with fully integrated operations in Mexico. We will also have expanded capabilities to serve customers across many geographies, driving additional productivity and cost savings.”
The deal, which is subject to regulatory approvals and other conditions, is likely to be wrapped up by the end of the year.