WestRock Company (WRK - Free Report) concluded its previously announced acquisition of Multi Packaging Solutions International Limited in a bid to strengthen its differentiated portfolio of paper and packaging solutions. The acquisition is expected to be immediately accretive to the company’s financial results, both on an earnings per share basis and cash flow basis. Further, it will also open up significant opportunities for margin expansion and synergies.
Financials of the Deal
WestRock had made the announcement in Jan 2017 and declared that it will acquire the leading global provider of print-based specialty packaging solutions for $18.00 per share in cash and the assumption of an estimated $873 million in net debt. The transaction valued Multi Packaging Solutions (“MPS”) at $2.28 billion which represents a trailing 12-month adjusted EBITDA multiple as of Sep 30, 2016, of 9.6 times, and 7.1 times including anticipated synergy and performance improvements. WestRock had stated that the transaction would be financed through a combination of cash and existing credit facilities.
Why Multi Packaging Solutions?
MPS has a global presence, catering to customers from 59 locations across North America, Europe and Asia. It boasts of a differentiated product offering including premium folding cartons, inserts, labels, and rigid packaging. It has a diverse, blue chip customer base, primarily in the growing consumer and healthcare sectors. The company generated revenues of $1.6 billion and adjusted EBITDA of $237 million, on a trailing 12-month basis as of Sep 30, 2016.
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WestRock Company (WRK - Free Report) concluded its previously announced acquisition of Multi Packaging Solutions International Limited in a bid to strengthen its differentiated portfolio of paper and packaging solutions. The acquisition is expected to be immediately accretive to the company’s financial results, both on an earnings per share basis and cash flow basis. Further, it will also open up significant opportunities for margin expansion and synergies.
Financials of the Deal
WestRock had made the announcement in Jan 2017 and declared that it will acquire the leading global provider of print-based specialty packaging solutions for $18.00 per share in cash and the assumption of an estimated $873 million in net debt. The transaction valued Multi Packaging Solutions (“MPS”) at $2.28 billion which represents a trailing 12-month adjusted EBITDA multiple as of Sep 30, 2016, of 9.6 times, and 7.1 times including anticipated synergy and performance improvements. WestRock had stated that the transaction would be financed through a combination of cash and existing credit facilities.
Why Multi Packaging Solutions?
MPS has a global presence, catering to customers from 59 locations across North America, Europe and Asia. It boasts of a differentiated product offering including premium folding cartons, inserts, labels, and rigid packaging. It has a diverse, blue chip customer base, primarily in the growing consumer and healthcare sectors. The company generated revenues of $1.6 billion and adjusted EBITDA of $237 million, on a trailing 12-month basis as of Sep 30, 2016.
Westrock Company Price
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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