RockTenn seals Smurfit-Stone Container acquisition
RockTenn and Smurfit-Stone Container complete sales negotiations.
RockTenn has completed sales negotiations to purchase its larger rival Smurfit-Stone Container for $3.5 billion (£2.19 billion) in cash and stock.
The move comes seven months after Smurfit emerged from bankruptcy with less debt and higher profit potential.
The strategic transaction was unanimously approved by the boards of directors of both companies and will create a $9 billion leader in the North American paperboard packaging market.
James A Rubright, RockTenn's chairman and chief executive officer, stated the acquisition "is another major step in our transformation of RockTenn to be the most respected company in our business with a laser focus on exceeding our customers' expectations and creating long term shareholder value".
He added he believes the transaction provides the greatest possible career opportunities for employees of both companies.
This follows the recent news that business negotiations between online store Amazon and movie and game subscription firm LoveFilm have ended with an acquisition thought to be worth about £220 million.