WestRock Expects To Make $1 Billion From Sale Of Assets To Silgan

By Tomi Kilgore Markets MarketWatch Pulse

WestRock Co. announced Monday a deal to sell its home, health and beauty business to Silgan Holdings Inc. for $1.025 billion, plus the assumption of $25 million in foreign pension liability. WestRock said it expects to receive net proceeds $1 billion from the sale. "We have a constant strategic focus at WestRock on aligning our portfolio and resources around our core paper and packaging solutions businesses, and the sale of our Home, Health and Beauty business is the next step in this process," said WestRock Chief Executive Steve Voorhees. The deal is expected to close during the current quarter. Silgan expects the deal to add to earnings, and will add more to earnings over time as synergies, which are expected to be $15 million within 24 months, are phased in. WestRock's stock has soared 53% over the past 12 months, while Silgan shares have tacked on 3.3% and the S&P 500 has gained 19%.

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