WestRock Company (NYSE:WRK) today announced that it is expanding its consumer packaging portfolio with the acquisition of Hanna Group Pty Ltd (Hannapak), one of Australia’s leading providers of folding cartons to a variety of markets, including beverage, food, confectionary, and healthcare. The acquisition will build on WestRock’s established and growing packaging business in the region.
“Hannapak has built an outstanding folding carton business in Australia based on their superior capabilities and customer service,” said Steve Voorhees, chief executive officer of WestRock. “We have a strong relationship with the company and the Hanna family based on an 18-year partnership as one of our key converting partners in the region, and we are excited about the clear cultural and operational fit between the two companies. This acquisition expands our geographic footprint to better serve global and local customers, and will enable us to improve WestRock’s beverage packaging business in the region while expanding our participation to a variety of other attractive end markets.”
Hannapak is based in western Sydney in North Richmond, New South Wales. Started in 1967 by Charles Hanna, the company converts approximately 30,000 tons of paperboard into folding cartons, including for WestRock’s beverage packaging customers. The business has been led by Sam Hanna, who joins WestRock and will continue to lead the acquired operations.
WestRock expects to generate significant synergies with its current business in the region, including integration of additional WestRock paperboard into the Hannapak system. The AUD$75 million purchase price will be paid in cash and is subject to a customary net working capital adjustment. The purchase price represents an EBITDA multiple of seven times (pre-synergies) or less than five times after WestRock’s synergies have been taken into account.
http://ir.westrock.com/press-releases/press-release-details/2017/WestRock-Acquires-Hannapak/default.aspx