Mega-Merger Shakes Up Consumer Packaging: WestRock and Smurfit-Kappa Combine Forces

A huge consolidation in the consumer packaging market announced in September underscores continuing disruption in the packaging industry. The recent move will impact West Rock in the U.S. as it combines with European-based Smurfit-Kappa.

The combination of the two businesses will form the largest firm in the corrugated packaging market with revenue of $34 billion, exceeding International Paper and Ball Corporation.

The new company, named Smurfit WestRock will have its global headquarters in Dublin, Ireland, Smurfit Kappa’s home. WestRock is based in Atlanta and has a heavy manufacturing presence in the Southeast. It has a limited presence in the Lake States compared to other regions. Smurfit Kappa’s has recycling and packaging facilities mainly in Texas in North America but has extensive global operations.

According to recent announcements, Covid brought a big surge in demand for e-commerce packaging, but demand has slowed as the pandemic subsided and West Rock is “streamlining” its operations.

Smurfit Kappa shareholders will own approximately 50.4% of the new company and its CEO, Tony Smurfit, will be its CEO, according to the merger announcement.