Graphic Packaging, IP partner in $6-billion paper-based packaging company

Graphic Packaging Holding Company, Atlanta, GA, will create a $6-billion paper-based packaging company by forming a partnership composed of its existing businesses and International Paper’s North America Consumer Packaging business.

Graphic Packaging Holding Company will own 79.5% of the partnership and will be the sole operator. IP will own 20.5% of the partnership, equivalent to a $1.14-billion value. The partnership will assume $660 million of IP debt. Graphic Packaging’s current board of directors or leadership team will not change.

IP’s North America Consumer Packaging business is a $1.6-billion-revenue producer of solid bleached sulfate (SBS) paperboard and paper-based foodservice products globally. The business includes two SBS mills — in Augusta, GA and Texarkana, TX – with production capacity of 1.2 million tons/y, three converting facilities in the US and one in the UK, with the capacity to convert 250,000 tons/y of SBS paperboard into over 24 billion units of paper-based cups and cylindrical containers. The business is projected to generate adjusted EBITDA of $210 million in 2017.

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