WestRock will also acquire SP Fiber's 48% interest in Green Power Solutions of Georgia, LLC (GPS). GPS is a renewable energy joint venture providing energy to Georgia Power and steam to the paper mill in Dublin. The total value of this transaction is $288.5 million.
"The Dublin and Newberg mills will balance the fiber mix of our mill system and the addition of kraft and bag paper will diversify our product offering," said Steve Voorhees, CEO of WestRock. "We expect to apply our operating capabilities to improve the cost structure of both mills. As a result, our mill system will be better positioned to serve the increasing demand for lighter weight containerboard and kraft paper."
The transaction is expected to generate significant synergies and be accretive to earnings in the second half of fiscal year 2016. The transaction is subject to regulatory approval and will close after the regulatory process has concluded.
SP Fiber produces containerboard and kraft and bag paper for end use in consumer and corrugated packaging.
WestRock Company aspires to be the premier partner and unrivaled provider of paper and packaging solutions in consumer and corrugated markets.
