The partnership was mutually beneficial and provided returns for both companies. “I want to thank Mark Sutton, chairman and CEO, and the entire International Paper team for their contributions in building a platform to service and grow with new customers in attractive markets. Over the last year, International Paper has reduced its interest in the partnership company, with Graphic Packaging upping its ownership stake to 82.5% following two transactions, each at $250 million.ĭoss added: “The highly integrated model we have built enables us to serve a broad set of global customers with new and innovative packaging solutions, positioning us to achieve the ambitious growth and return goals established in Vision 2025. Graphic Packaging formed the $6 billion mergerwith International Paper’s North America consumer packaging business back in January 2018 which saw it own 79.5% of the partnership and become the sole manager, while International Paper held a 20.5% stake. “The partnership with International Paper played an important role as we established our leadership position in fibre-based consumer packaging across all three paperboard substrates,” said Michael Doss, Graphic Packaging president and CEO. The deal – which sees Graphic Packaging now own 100% of the merger – concludes the company’s partnership with International Paper.Īs part of the final transaction, Graphic Packaging exchanged shares of common stock for International Paper’s remaining minority partnership interest of over 22 million membership units. Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, is committed to providing consumer packaging that makes a world of difference. The Contego Healthcare business, a packaging supplier to the pharmaceutical and healthcare industries, is not affected.Graphic Packaging has acquired the remaining shares that International Paper held in the companies’ packaging merger, completing its takeover of Graphic Packaging International Partners. “There are solid synergies in this combination and we believe the Contego Cartons acquisition is an important step in strengthening our competitive positioning in Europe." “Similar to our strategy in the US, we are committed to growing our European business around food and beverage markets and optimizing our supply chain footprint around our customers' needs,” he said. “Combining Graphic's current European business focused in the beverage markets with Contego's strong market share position in the European food and consumer products markets will allow us to broaden our customer base and enhance our competitive positioning. "Contego operates throughout Western Europe with state of the art facilities in the UK and the Netherlands. Graphic Packaging said they expect to generate $8-$10m of synergies over next two years and be accretive to earnings in first full year after integration.ĭavid Scheible, Graphic Packaging's president and chief executive officer, said the combination of the businesses creates a new diversified platform. The firm manufactures speciality cartons, sandwich packs and standard folding cartons for markets including bakery, confectionery and beverage. Two of the facilities are located in the UK while the third facility is in the Netherlands.Ĭontego Cartons had trailing twelve month sales of $260m and EBITDA of nearly $19m and is owned by Platinum Equity. The all-cash deal funded using existing liquidity also involves £10m in other net liabilities and is expected to close in December subject to standard closing requirements.Ĭontego Cartons operates three folding carton facilities that convert 150,000 tons of paperboard annually into folding cartons. The acquisition enhances Graphic Packaging's position in Europe by growing its operating footprint, expanding into new markets and providing new opportunities for growth, they added. The company said the deal would create a “leading position in the European food and consumer products folding carton market”. Packaging & Packing Materials, Containers.Processing Equipment & Systems, Automation, Control.Filling & Packaging Equipment & Systems.
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