Smurfit Westrock Announces Agreement to Acquire CMPC’s Chilean Containerboard and Corrugated Business

Transaction Highlights

• Establishes leading market position in Chile with a world-class, well-invested asset base
• Further strengthens Smurfit Westrock’s integration and southern Latam operations
• 1 recycled containerboard mill (with a network of fiber collection centers), 3 corrugated plants and 1 molded tray facility
• Strong synergistic and operational benefits expected
• Consideration of $420 million represents a post-synergy transaction multiple of less than 6 times Adjusted EBITDA
• Significant step on the path to Smurfit Westrock Latam 2030 targets

DUBLIN--(BUSINESS WIRE)--Smurfit Westrock plc (“Smurfit Westrock” or the “Company”) (NYSE: SW) is pleased to announce its agreement to acquire the Chilean Containerboard and Corrugated business of Empresas CMPC S.A. (“CMPC”) for consideration of $420 million, which represents a post-synergy transaction multiple of less than 6 times Adjusted EBITDA.

We believe the business is highly complementary to our existing operations and provides an excellent platform from which to continue growing alongside our customers in Latin America.

These assets are strategically located close to the country’s key fishery and agricultural regions, complementing our existing corrugated business and represent, for Smurfit Westrock, the opportunity to acquire one of the leading positions in containerboard and corrugated in Chile. The well-invested paper machine, located in Santiago, produces approximately 250,000 tons per year and will strengthen our regional paper system. It will allow us to integrate recycled paper into our operations in Argentina, Peru, and Ecuador, while also enabling us to route kraftliner from Brazil and North America into the acquired corrugated assets in Chile.

The Company intends to fund the transaction using its own liquid resources. Completion is expected during the first half of 2027, subject to customary closing conditions, including regulatory approvals.

Tony Smurfit, President and CEO, said: ‘Opportunities to acquire a truly unique business like this one are rare. CMPC has nurtured and grown this business over many decades and brings tremendous expertise into the Smurfit Westrock organization. With both the extensive industry knowledge and geographic footprint that Smurfit Westrock brings to our new colleagues, I am very excited about future opportunities for growth and development across the region. I am equally pleased to expand our presence in the Chilean market which, over decades, has shown strong growth and resilience.’

Alvaro Henao, CEO of Smurfit Westrock Latam, said: ‘In our previously announced Medium-Term Plan, we identified Latam as a region of growth and development both through internal investment and acquisition. I am particularly happy to reach this agreement to acquire world- class assets in Chile with a formidable team that we look forward to welcoming into the Smurfit Westrock organization. This firmly establishes Smurfit Westrock as the leading player in Chile and further strengthens our regional footprint.’

Forward Looking Statements

This press release includes certain “forward-looking statements” (including within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) regarding, among other things, the plans, strategies, outcomes, outlooks and prospects, both business and financial, of Smurfit Westrock, the expected timing, completion and benefits of the acquisition of CMPC’s Chilean containerboard and corrugated business; the ability to obtain regulatory approvals and satisfy other customary closing conditions; the anticipated strategic and operational benefits, integration opportunities, and synergies resulting from the transaction; the anticipated post-synergy transaction multiple; and the expected contribution of the acquired business to Smurfit Westrock’s Latin American operations; as well as Smurfit Westrock’s medium-term plan, including with respect to Smurfit Westrock’s anticipated path to delivering shareholder value and any other statements regarding the Company’s future expectations, beliefs, plans, objectives, capital allocation decisions, investment strategy and return on capital employed, results of operations, financial condition and cash flows, or future events, outlook, or performance.

Statements that are not historical facts, including statements about the beliefs and expectations of the management of Smurfit Westrock, are forward-looking statements. Words such as “may”, “will”, “could”, “should”, “would”, “anticipate”, “intend”, “estimate”, “project”, “plan”, “believe”, “expect”, “target”, “prospects”, “potential”, “commit”, “forecasts”, “aims”, “considered”, “likely” and variations of these words and similar future or conditional expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are based on current beliefs and expectations, and while the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the control of the Company. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results may differ materially from those expressed or implied by these forward-looking statements, including as a result of risks and uncertainties relating to Smurfit Westrock’s business and the proposed acquisition, such as: the ability to deliver on Smurfit Westrock’s medium-term plan, including with respect to the Company’s capital returns to shareholders, planned investments and growth; the ability to obtain required regulatory approvals and satisfy customary closing conditions on the expected timetable or at all; current expectations of the possibility that the transaction may not be completed or may be completed on different terms or at a different time than expected; the ability to successfully integrate the acquired assets and employees into Smurfit Westrock; the ability to realize expected synergies, operational efficiencies, strategic benefits, including risks associated with the integration and growth opportunities, including within Latin America; the performance of the acquired business and the Chilean containerboard and corrugated markets; and other risk factors included in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K. The Company’s forward-looking statements speak only as of the date of this press release or as of the date they are made. Neither the Company nor any of its associates or directors, officers or advisers provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any such forward-looking statements will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Other than in accordance with its legal or regulatory obligations, the Company is under no obligation, and the Company expressly disclaims any intention or obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

About Smurfit Westrock

Smurfit Westrock is a leading global provider of paper-based packaging solutions, with approximately 96,000 employees across 40 countries.