Graphic Packaging combines with IP’s NA consumer packaging business
Atlanta, GA-based Graphic Packaging Holding Company (NYSE: GPK) has completed the combination of its existing businesses with International Paper’s (NYSE: IP) North America consumer packaging business. GP owns 79.5% of the combined company and will be the sole manager while IP will own 20.5%. GP assumed $660 million of IP debt and concurrently has amended and restated its senior secured credit agreement.
GP says highlights of the deal include:
• Creation of a leading integrated paper-based packaging company with about $6 billion of projected revenue and $1 billion of projected EBITDA post-synergies.
• Expansion of existing and building new platforms for integrated growth in SBS foodservice markets and folding carton converting. • Targeting $75 million in synergies by the end of year three.
• Projection of being accretive to earnings in year one.
GP is one of the largest producers of folding cartons and paper-based foodservice products in the US; it has converting operations and produces paperboard, coated unbleached kraft paperboard and coated-recycled paperboard.