News Packaging
Graphic Packaging acquiring Consumer Packaging Group business from Greif

Graphic Packaging Holding Co., a provider of packaging solutions to food, beverage, foodservice, and other consumer products companies, through its primary U.S. operating company, Graphic Packaging International LLC, has entered into a definitive agreement to acquire the Consumer Packaging Group business from Greif Inc. for approximately US$85 million.

The transaction is expected to close in the first quarter of 2020, subject to standard closing conditions.

Under the deal, Graphic Packaging will acquire seven converting facilities across the U.S. that produce over US$200 million in annual revenue. The business is expected to generate approximately US$20 million in annualized EBITDA, including synergies, over the 24-month period after the successful completion of the acquisition.

“[This] transaction further diversifies our end-markets and enhances our service capabilities to growing mid-sized consumer goods and food service customers,” Graphic Packaging president and CEO Mike Doss said in a Feb. 28 statement. “The continued strategic investments we are making in our integrated mill and converting platform reflect our commitment to existing and new customers to provide the industry’s most efficient production of the highest quality paperboard into sustainable packaging solutions.”