Graphic Packaging Holding Company has completed the combination of Graphic Packaging’s existing businesses with International Paper’s North America Consumer Packaging business. Graphic Packaging owns 79.5 percent of the combined company and will be the sole manager.
International Paper will own 20.5 percent of the combined company. Graphic Packaging has assumed $660 million (all figures in U.S. dollars) of International Paper debt and concurrently has amended and restated its senior secured credit agreement.
There is no change to Graphic Packaging’s current Board of Directors or leadership team. International Paper has a 2-year lock-up on the monetization of their ownership interest and cannot purchase GPK shares for a period of 5 years, subject to limited exceptions.
On a combined basis, Graphic Packaging is now one of the world’s largest integrated paper-based packaging companies with approximately $6 billion of projected revenue and approximately $1 billion of projected EBITDA post-synergies.
Graphic Packaging is one of the largest producers of folding cartons and paper-based foodservice products in North America, has strategic folding carton and foodservice converting positions globally, and holds leading market positions in solid bleached sulfate paperboard, coated unbleached kraft paperboard and coated-recycled paperboard.
“We are excited to close this transformative transaction at the start of the New Year… [We] expect the transaction will significantly increase our mill production and converting scale… The combination meaningfully increases our exposure to the growing foodservice market,” said Graphic Packaging President and CEO Michael Doss.
Headquartered in Atlanta, Georgia, Graphic Packaging holds two Canadian operations in Cobourg and Mississauga, Ontario. In November 2017, Graphic Packaging agreed to acquire the assets of Canada’s Seydaco Packaging Corp. and its affiliates National Carton and Coating Co., and Groupe Ecco Boites Pliantes Ltée.
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