Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
In 4Q15, $WRK's Consumer Packaging segment net sales declined $140MM or 8% YoverY to $1.64Bil, this includes $37MM of negative impact from currency. Overall, the segment results reflect good commercial and operational execution in the face of some difficult macro headwinds related to the stronger USD.
$WRK has named James Armstrong as Vice President, Investor Relations. Most recently, Armstrong covered the paper, packaging and building materials industry through his own investment research firm. Prior to this, he was Vice President and Chief Technology Officer of Vertical Research Partners.
$WRK agreed to acquire substantially all the assets of corrugated packaging company Plymouth Packaging, Inc. The transaction includes Plymouth’s fanfold corrugated facilities in, Michigan, Texas and Pennsylvania, and all the company-owned Box on Demand machines located in customers’ facilities. The deal is subject to customary closing conditions.
$WRK has priced $500MM aggregate principal amount of 3.00% senior notes due 2024 and $500MM aggregate principal amount of 3.375% senior notes due 2027. The company intends to use the net proceeds of the offering to repay approx. $990MM of indebtedness. The offering is expected to close on Aug. 24, 2017.
$WRK expanded its consumer packaging portfolio with the acquisition of Hanna Group Pty Ltd for AUD$75MM (approx. US$59.8MM) purchase price, to be paid in cash. Hanna Group is a provider of folding cartons to a variety of markets in Australia. $WRK expects to generate significant synergies with its current business in the region.
$WRK has agreed to acquire the assets of Island Container Corp. and Combined Container Industries LLC. $WRK will pay total consideration representing an EBITDA multiple of less than 4.5 times on a post-synergy basis. The consideration will be made in cash. The transaction is subject to customary closing conditions.
$WRK entered into a definitive agreement to acquire certain operations of U.S. Corrugated, an independent manufacturer of corrugated products for packaging and displays, for about $192MM in a combination of cash and WestRock stock. The transaction is expected to be accretive to earnings in year one, and is expected to close in June 2017.
$WRK's segment income for 1Q17 increased by $25MM from last year. The increase was primarily due to an increase in the Land and Development segment and a rise in the Consumer Packaging segment, partially offset by a decrease in the Corrugated Packaging segment.
$WRK reported a jump in 2Q17 earnings driven by favorable pricing and demand trends along with its unique portfolio of products and capabilities. Net income rose to $103.1MM or $0.40 per share from $56.9MM or $0.22 per share last year. Sales grew to $3.66Bil from $3.49Bil. Adjusted EPS for the latest quarter was $0.54.
$WRK agreed to buy $MPSX for $18 per share in cash and assumption of an estimated $873MM in net debt, for a total enterprise value of $2.28Bil. The acquisition is expected to be immediately accretive to $WRK's results, both on an EPS basis and cash flow basis, inclusive of purchase accounting adjustments.The transaction will close in $WRK's 3Q17.