Graphic Packaging International acquires US firm Carton Craft
Graphic Packaging International (GPI) has purchased US-based converter Carton Craft and its affiliate Lithocraft.
As part of the acquisition, GPI acquired all assets from the combined businesses.
However, financial details of the transaction were not disclosed.
Carton Craft manufactures paperboard-based air filter frames and folding cartons, as well as operates two converting facilities in New Albany, Indiana, US.
The combined businesses generated revenues of around $70m and strong converting EBITDA margins on an LTM basis.
At the time of the announcement, GPI president and CEO Michael Doss said: "The announced transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets, provide a runway for further margin improvement, and that we can close at compelling post-synergy EV/EBITDA multiples."
According to GPI, synergies from the acquisition will be driven by the integration of additional coated unbleached kraft (CUK) paperboard and cost efficiencies.
In April 2016, GPI Australia purchased Colorpak, which supplies folding cartons in Australia and New Zealand.
Colorpak operates three converting facilities in Melbourne and Sydney, Australia, and Auckland, New Zealand.
Based in Atlanta, US, GPI currently provides paper-based packaging solutions for a variety of food and beverage products.
Operating on a global basis, the company produces folding cartons in the US.