US packaging company WestRock has acquired its smaller rival Multi Packaging Solutions International in a $1.39 deal.

The deal will see WestRock have access to various markets such as cosmetics, in a move that sees many packaging manufacturers consolidate in a bid to counteract a fall in demand.

It is thought that the collaboration will give WestRock further weight in Europe, with its shares rising to 3.9 percent to $55.22 following news of the deal, a 16-month high. Multi Packaging Solutions shares all saw a climb to $17.85, a 24 percent rise. The deal includes $873m of MPS’s debt.

Steve Voorhees, Chief Executive of WestRock, said, “The combination of WestRock and MPS creates opportunities to drive margin expansion and enhanced financial returns through a combination of increased integration and identified synergies. Overall, this is a highly strategic transaction consistent with our balanced capital allocation strategy that we expect will generate compelling growth and returns. We have the right team in place with deep integration experience to fully realize this opportunity.”