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WestRock to Acquire Cenveo Packaging

NORCROSS, Ga., Dec. 10, 2015 (GLOBE NEWSWIRE) -- WestRock Company (NYSE:WRK) has entered into a definitive agreement to acquire Cenveo Packaging, a leading provider of value-add folded carton and litho-laminated display packaging solutions with six facilities located in North America. Cenveo Packaging is a division of Cenveo, Inc. (NYSE:CVO). Cenveo Packaging has generated more than $190 million in revenue over the past 12 months.

"With attractive and complementary customers, markets and facilities, Cenveo Packaging will be an excellent addition to our consumer packaging business," said Steve Voorhees, chief executive officer of WestRock. "By combining our operating expertise in folding cartons and integrating WestRock paperboard with Cenveo Packaging's packaging and printing capabilities, we will be able to better serve our customers while generating significant synergies and performance improvements."

Cenveo Packaging serves customers across North America with a focus on markets that value high-color printing and packaging capabilities, including food, beverage, pharma/nutraceutical, specialty tobacco and other consumer markets.

"We are excited to be able to offer customers a wider network of facilities and a more diverse set of capabilities, including MiraFoil®, cold foil and low migration ink systems, each of which will help our customers to be even more successful in their markets," said Craig Gunckel, executive vice president, Merchandising Displays and Folding Carton, Packaging Solutions, WestRock.

At closing, WestRock will pay a total consideration of approximately $105 million. The transaction, which provides for an election under section 338(h)(10) of the Internal Revenue Code of 1986, as amended, is expected to generate significant synergies and be accretive to earnings immediately. The transaction is anticipated to close in early 2016 following regulatory approval.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations, beliefs, plans or forecasts and are typically identified by words or phrases such as "may," "will," "could," "should," "would," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "prospects," "potential" and "forecast," and other words, terms and phrases of similar meaning. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties.

WestRock cautions readers that a forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Such forward-looking statements include statements regarding, among other things, our expectation that we will be able to better serve our customers while generating significant synergies and performance improvements; our expectation that the transaction will be accretive to earnings immediately and our anticipation that the transaction will close in early 2016 following regulatory approval.

With respect to these statements, WestRock has made assumptions regarding, among other things, the results and impacts of the merger of MeadWestvaco and RockTenn and the acquisition of Cenveo Packaging; whether and when the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expires or terminates; economic, competitive and market conditions generally; volumes and price levels of purchases by customers; competitive conditions in WestRock's businesses and possible adverse actions of their customers, competitors and suppliers.

Further, WestRock's businesses are subject to a number of general risks that would affect any such forward-looking statements including, among others, decreases in demand for their products; increases in energy, raw materials, shipping and capital equipment costs; reduced supply of raw materials; fluctuations in selling prices and volumes; intense competition; the potential loss of certain customers; the scope, costs, timing and impact of any restructuring of our operations and corporate and tax structure; the occurrence of a natural disaster, such as a hurricane, winter or tropical storm, earthquake, tornado, flood, fire, or other unanticipated problems such as labor difficulties, equipment failure or unscheduled maintenance and repair, which could result in operational disruptions of varied duration; our desire or ability to continue to repurchase company stock; and adverse changes in general market and industry conditions. Such risks and other factors that may impact management's assumptions are more particularly described in our filings with the Securities and Exchange Commission, including in Item 1A under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2015. The information contained herein speaks as of the date hereof and WestRock does not have or undertake any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

About WestRock

WestRock Company (NYSE:WRK) aspires to be the premier partner and unrivaled provider of paper and packaging solutions in consumer and corrugated markets. WestRock's 41,000 team members support customers around the world from 268 operating and business locations spanning North America, South America, Europe and Asia. Learn more at westrock.com.

Investor Contacts:
John Stakel
Senior Vice President, Treasurer
678-291-7901
john.stakel@westrock.com

Jason Thompson
Director, Investor Relations
804-444-2556
jason.thompson@westrock.com

Media Contact:
Tucker McNeil
Director, Corporate Communications
804-444-6397
mediainquiries@westrock.com

Source:WestRock Company