About Saverio Mayer
In September 2023, Smurfit Kappa CEO Tony Smurfit announced the company's merger with U.S. peer WestRock, describing the deal as "fantastic" for shareholders. Smurfit stated that the merger addressed a "very big gap" in the company's portfolio due to its lack of U.S. operations, and said the combined entity would have $34 billion in adjusted annual revenue, with about 65% of revenues coming from the United States and Latin America. He noted that the company intended to list primarily in the U.S., citing a larger pool of capital there. Smurfit characterized WestRock as "at the beginning of its transformation" and Smurfit Kappa as "towards the end of its transformation," and said the combination would create "significant cost reduction opportunities."
In a 2022 interview, Smurfit discussed his leadership philosophy, emphasizing the importance of communication and treating all employees with respect. He said that "everybody's the same" regardless of their role, and that he aims to be a leader who "wants to do the right thing for the people of the factories."
Source: AI-verified profile updated from Saverio Mayer's recent appearances.
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Transcript (9 segments)
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Saverio Mayer0:11
We figured out a way to get in there in a way that would reward our shareholders over the long term. Clearly we've been talking with WestRock for a period of time, and we've known the company for a long period of time. We identified it as an asset that we can develop with and combine with to be an even better asset. So after a long series of negotiations, we finally got to an agreement at 7:15 this morning to finally close out this deal, which I think is going to be fantastic for our shareholders in the long term, the medium term, and the short term. I think what we're doing is combining a company like WestRock, which was really at the beginning of its transformation, with Smurfit Kappa, which is in the middle or towards the end of its transformation.
We intend, because about 65% of our revenues are going to be in the United States and Latin America, to list there as a primary listing. Clearly multiples and the pool of capital over there is bigger for companies like ours. I think Steve, you said it earlier, that we're an unloved sector, but we want to make ourselves to be loved. I think this is a good way to do it.
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Interviewer1:36
You step out there to woo investors then, particularly from the U.S. market. You've got a combined group now, $34 billion in adjusted annual revenue for the past 12 months from your two companies. How quickly can you grow the business from here? Because we know it's been a somewhat bumpy cycle on the back of the COVID era, where there was huge demand for packaging.
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Saverio Mayer2:10
Long after we're gone, Karen and Steve and me, people will be using packaging, all the packaging that this company WestRock will make. This is a very, very good business. Obviously, what we have to do is run it well. I think in Smurfit Kappa, we've proven that we've been able to run our business well over the last number of years despite all the bumps in the roads, ups and downs. We've grown our business, we've reduced our debt, we've increased our margins, and we've made sure that the company progresses forward with very good acquisitions. This is just another transformation, if you will. Putting these two companies together is going to be very exciting for us, and it's going to give great opportunities for all the WestRock employees to continue to grow with this company.
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Interviewer3:11
It's going to be real pitted to start off with, Tony. This is a takeover, not a merger, isn't it?
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Saverio Mayer3:15
It's a combination. Steve, we believe that both companies have incredible opportunities in their respective businesses. Obviously, we are paying a premium, so the positions reflect that. I think that we're very happy that we're going to keep the best of both companies. As we've done when we merged Smurfit and Kappa, it's a combination, and that's the way we think of things.
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Interviewer3:45
Really? So as part of it, you're giving $5 in cash for each one of the WestRock shareholders. Just a little question on the under financing, Tony. One of the reasons why people don't buy companies at this stage of the cycle is because of...
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Saverio Mayer4:12
It's a relatively small amount in the context of the size of the company. We have that all committed, it's done and backed up by our banks. So that is a relatively small amount of money in the context of the size of the company.
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Joanna Versace4:26
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