Westrock to acquire Plymouth Packaging
Acquisition to further integrate the Westrock’s containerboard system.
December 12, 2017
by Canadian Packaging staff
ATLANTA—WestRock Company, a leading provider of differentiated paper and packaging solutions, has agreed to acquire Plymouth Packaging, Inc.
Plymouth is a corrugated packaging company that derives approximately 70 percent of its sales from its “Box on Demand” systems and corrugated fanfold, and 30 percent from traditional corrugated box packaging.
Plymouth’s market-leading “Box on Demand” systems are located on the customer’s site and use fanfold corrugated to produce custom, on-demand corrugated packaging that is accurately sized for any product type according to the customer’s specifications. Fanfold corrugated is continuous corrugated board, folded periodically to form an accordion-like stack of corrugated material. Plymouth installs “Box on Demand” machines on its customers’ sites under multi-year exclusive agreements for the fanfold corrugated supply.
Approximately 40 percent of the “Box on Demand” systems’ sales are to e-commerce customers, with the remaining customers serving building products, furniture and other markets. Plymouth currently supplies more than 100 customers with proprietary “Box on Demand” machines, manufactured by Panotec. As part of the transaction, WestRock will acquire Plymouth’s equity interest in Panotec and Plymouth’s exclusive right to distribute Panotec’s equipment in the U.S. and Canada.
The acquisition of Plymouth will further integrate the company’s containerboard system. WestRock currently provides one-third of the nearly 60,000 tons of containerboard used by Plymouth annually, and intends to fully integrate these tons after the transaction closes. WestRock expects additional containerboard integration opportunities as the company serves this growing on-demand packaging market.
“The acquisition of Plymouth Packaging will further develop our innovation platform and our differentiation strategy,” says Westrock president of corrugated packaging Jeff Chalovich. “The addition of the ‘Box on Demand’ system will enhance our automated packaging systems business and WestRock’s differentiation in e-commerce and other custom applications where on-site box making is needed. The acquisition will improve our margin profile, our growth prospects in our corrugated packaging business and move us closer to our goal to be 80 percent integrated.”
Plymouth was founded in 1991 by Paul Magnell and is currently owned by the Magnell family, with Greg Magnell the company president, and will in his leadership role after the the acquisition.
“We are excited to become part of WestRock and believe there is a strong cultural fit with our two organizations,” says Magnell. “The combination provides access to a much broader geographic footprint and significant additional resources that will help this business continue to grow and serve our customers.”
The transaction includes Plymouth’s fanfold corrugated facilities in Battle Creek, Michigan; Ft. Worth, Texas; and Mechanicsburg, Pennsylvania; and all of the company-owned “Box on Demand” machines located in customers’ facilities. The transaction is subject to customary closing conditions.
WestRock partners with its customers to provide differentiated paper and packaging solutions that help them win in the marketplace. WestRock’s 45,000 team members support customers around the world from more than 300 operating and business locations spanning North America, South America, Europe, Asia and Australia. Learn more at www.westrock.com.
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