WestRock to Sell Ownership Interest in RTS Packaging to Sonoco; Agrees to Sell URB Mills in Illinois and Indiana to Ox Industries

摘要

WestRock in November entered into a definitive agreement to wholly divest its ownership interest in RTS Packaging,LLC,to joint venture partner Sonoco Products Company for $330 million,subject to customary price adjustments.In addition,WestRock has signed a definitive agreement to sell its uncoated recycled paper-board[URB]mills in Eaton,Indiana,and Aurora,Illinois,to Ox Industries for $50 million.WestRock's mill in Chattanooga,Tennessee,which supplies RTS with URB,is included in the RTS Packaging transaction.This mill will be strategically integrated into the Sonoco Products Company portfolio.The transaction is expected to close in the first half of 2023,subject to the satisfaction of customary closing conditions,including regulatory approval.The Eaton and Aurora mills produce URB,which is not a priority product for WestRock,and are optimized assets for Ox Industries,a supplier and manufacturer of recycled paper-board products.The transaction is expected to close in late 2022 or early 2023.