WestRock Company (WRK - Free Report) recently entered into an agreement to acquire Schlüter Print Pharma Packaging — a German-based supplier of a full range of leaflets and booklets. Financial terms of the transaction have not been disclosed yet.
Schlüter utilizes UV flexographic printing technology to produce film solutions in its primary packaging area. Its secondary packaging products include folding boxes and booklets, such as pharmaceutical mini-brochures. Moreover, Schlüter has an excellent reputation as a premium supplier to customers in the pharmaceutical and automotive industries.
Benefits of the Deal
The Schlüter acquisition will enable WestRock to improve its business in these growing markets. It will also help expand the geographical footprint to better serve customers in Europe. Post acquisition, Schlüter will become part of WestRock’s Multi Packaging Solutions business. The transaction is subject to customary closing conditions.
Zacks Rank & Stocks to Consider
WestRock carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Domtar Corporation (UFS - Free Report) and Stora Enso Oyj (SEOAY - Free Report) . Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Domtar has a long-term earnings growth rate of 5%. The company’s shares have rallied 32% in the past year.
Stora Enso has a long-term earnings growth rate of 11.9%. The stock has gained 31% in a year’s time.
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