Tony Smurfit, the CEO of Smurfit Westrock, said combining the two packaging behemoths will expand their reach to 40 countries and support more than 100,000 employees. Smurfit Westrock’s global headquarters will be located in Dublin, while Westrock’s offices at Northpark Towncenter in Sandy Springs will anchor the company’s U.S. division. NE it’s homebase since 2017 after relocating about 800 employees from Norcross. Former Smurfit Kappa executives fill out the lion’s share of top executive positions at the new company. Similarly, Smurfit Kappa’s CFO xm review regulated broker with over 1000 assets to trade Ken Bowles assumed the same position at the new company.
Westrock Coffee Company (WEST)
The two companies’ combined revenue in the last fiscal year was $34 billion, and adjusted core profit was $5.5 billion. The new company, Smurfit WestRock, will be worth about $20 billion when listed. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The paper engineering leader announced a range of steps to preserve its financial position and prioritize debt reduction.
What Does The Deal Mean For WestRock Investors?
These two industry leaders pay handsome dividends and aren’t getting enough respect from the market, which puts them in play for income investors and value investors alike. The Barchart Technical Opinion rating is a 72% Buy with a Strengthening short term outlook on maintaining the current direction. What you need to know… The S&P 500 Index ($SPX ) (SPY ) on Monday closed up +0.76%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up +0.59%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed up… The S&P 500 Index ($SPX ) (SPY ) Thursday closed down -0.25%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up +0.77%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed down -0.79%. Smurfit Westrock was unveiled as the ‘Best Irish Company in France’ in the 2024 Ireland France awards last night. The awards recognise companies which have made an exceptional contribution to the development of trade and investment between Ireland and France.
- Packaging companies in metro Atlanta include UPS, Graphic Packaging and Veritiv, which announced last year it was purchased by a private equity firm in a $2.3 billion transaction.
- A new holding company will be created for Smurfit WestRock, which will be Dublin-based and listed on the New York Stock Exchange.
- I found the stock by using Barchart’s powerful screening functions to find stocks with the highest technical buy signals, highest…
- After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study.
- It seems like a good deal, as it presents a 28% premium over WestRock’s closing price yesterday and far exceeds the expected deal premium of 15% to 20%.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. With roots dating back to 1934, Smurfit Kappa a simple yet profitable strategy is also the product of a merger. Jefferson Smurfit, a maker of cardboard boxes and packaging materials for the Irish market, merged with its Dutch competitor Kappa Packaging in 2005.
WestRock Stock On a Tear After Smurfit Kappa Deal
On Monday, the company revealed it will be listed on the New York Stock Exchange under the ticker “SW” and will use the ticker “SWR” on the London Stock Exchange. The announcement kicked off a period of international megadeals between fiber packaging companies. London-based DS Smith in April agreed to be acquired by International Paper, after thwarting a proposed offer from Mondi. Weeks later, Brazilian pulp and paper company Suzano pursued International Paper, but discussions ended in June. Initial discussions about a Smurfit Westrock business combination date back to June 2019. central banks buying stocks have rigged us stock market beyond recovery International Paper made a play for Smurfit Kappa twice in 2018, but the latter company rejected the proposals.
Smurfit Kappa was nearly acquired in 2018 by International Paper for 8.9 billion Euros, but the deal fell apart. Given the extensive synergies between the two companies, Smurfit Kappa expects the deal to increase profits in the high single-digit by over 20% by the end of its first year of operations. A new holding company will be created for Smurfit WestRock, which will be Dublin-based and listed on the New York Stock Exchange. These growth stocks are trading at reasonable prices — exactly the kind of investment the investing guru sought. Smurfit Westrock has established itself as the go-to partner of choice for innovative and sustainable packaging in France with almost 50 manufacturing sites servicing over 7,000 customers in the country. The company’s sustainability credentials also came to the forefront this year when it was chosen by Airweave to supply over 16, % recyclable bed frames for the Paris 2024 Olympic and Paralympic Games.
Comprising 36 paper-based elements, the bed frames were manufactured locally to minimise the environmental impact of transportation to Paris alongside supporting the regional economy. After the Games, they were collected, recycled and turned into the equivalent of 1.5 million wine boxes, a true example of circularity. In securities filings, the companies projected a combined revenue of more than $32 billion with 100,000 employees. Smurfit Westrock will have more than 500 sites and 63 paper mills, spanning 40 countries and six continents. Westrock Coffee Co. engages in the production of coffee, tea, and extract products. The company was founded by Scott T. Ford and Joe T. Ford in 2009 and is headquartered in Little Rock, AR.