WestRock Enters Into Definitive Agreement to Divest Home, Health and Beauty Business for $1.025 Billion
January 23 2017 - 7:30AM
WestRock Company (NYSE:WRK) announced today that it has entered
into a definitive purchase agreement with Silgan Holdings Inc.
(NASDAQ:SLGN) under which Silgan will purchase WestRock’s Home,
Health and Beauty business for $1.025 billion in cash plus the
assumption of approximately $25 million in foreign pension
liability. WestRock expects to receive net after-tax proceeds from
the divestiture of approximately $1 billion.
“We have a constant strategic focus at WestRock on aligning our
portfolio and resources around our core paper and packaging
solutions businesses, and the sale of our Home, Health and Beauty
business is the next step in this process,” said Steve Voorhees,
chief executive officer of WestRock. “Over the past year, we have
made several investments that have further enhanced our business
portfolio, while exiting others that were not core to our goal of
being a premier provider of paper and packaging solutions to our
customers.”
WestRock’s Home, Health and Beauty business designs and produces
value added dispensing systems and closures for the global home
care, lawn and garden, personal care, beauty, fragrance and
healthcare markets.
The companies expect to close the transaction, subject to
necessary government and regulatory approvals, in the quarter
ending March 31, 2017. Additional financial information, including
the expected impact to WestRock’s 2017 results, will be provided
upon the closing of the transaction.
Lazard served as lead financial advisor to WestRock for this
transaction, and Wells Fargo Securities was also a financial
advisor to the company.
Forward-Looking StatementsThis release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on our current expectations, beliefs, plans or
forecasts and are typically identified by words or phrases such as
"may," "will," "could," "should," "would," "anticipate,"
"estimate," "expect," "project," "intend," "plan," "believe,"
"target," "prospects," "potential" and "forecast," and other words,
terms and phrases of similar meaning. Forward-looking statements
involve estimates, expectations, projections, goals, forecasts,
assumptions, risks and uncertainties. WestRock cautions readers
that a forward-looking statement is not a guarantee of future
performance and that actual results could differ materially from
those contained in the forward-looking statement. Such
forward-looking statements include statements regarding the
potential sale of WestRock’s Home, Health and Beauty business and
our anticipation that the transaction will close in the quarter
ended March 31, 2017. With respect to these statements,
WestRock has made assumptions regarding, among other things, the
results and impacts of the disposition of the Home, Health and
Beauty business; whether and when the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act expires or terminates;
economic, competitive and market conditions generally; volumes and
price levels of purchases by customers; competitive conditions in
WestRock's businesses and possible adverse actions of their
customers, competitors and suppliers. Further, WestRock's
businesses are subject to a number of general risks that would
affect any such forward-looking statements. Such risks and other
factors that may impact management's assumptions are more
particularly described in our filings with the Securities and
Exchange Commission, including in Item 1A under the caption "Risk
Factors" in our Annual Report on Form 10-K for the year ended
September 30, 2016. The information contained herein speaks as of
the date hereof and WestRock does not have or undertake any
obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
About WestRock WestRock (NYSE:WRK) partners
with our customers to provide differentiated paper and packaging
solutions that help them win in the marketplace. WestRock’s 39,000
team members support customers around the world from more than 250
operating and business locations spanning North America, South
America, Europe and Asia. Learn more at www.westrock.com.
WestRock Investors:Matt Tractenberg,
470-328-6327Vice President - Head of Investor
Relationsmatt.tractenberg@westrock.com
John Stakel, 678-291-7901Senior Vice President,
Treasurerjohn.stakel@westrock.com
Media: Chris Augustine, 470-328-6305 Director,
Corporate Communications mediainquiries@westrock.com
Silgan (NASDAQ:SLGN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Silgan (NASDAQ:SLGN)
Historical Stock Chart
From Apr 2023 to Apr 2024