US-based sustainable packaging provider Graphic Packaging has received all mandatory regulatory approvals to purchase fibre-based packaging producer AR Packaging.

Based in Lund, Sweden, AR Packaging is Europe’s second largest producer of fibre-based consumer packaging.

The company registers yearly net sales of around €900m ($1.05bn).

The acquisition is expected to add $1.1bn in annual sales and $160m in annual adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to Graphic Packaging.

The deal, first announced in May, is valued at almost $1.45bn in cash.

It is expected to close early next month subject to the remaining customary closing conditions being met, as stated in the deal agreement.

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At the time of signing the agreement, Graphic Packaging president and CEO Michael Doss said: “Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fibre-based consumer packaging solutions with long histories of innovation and creative packaging design.

“The large, distributed footprint of AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits strengthening our combined presence and ability to service customers throughout Europe and globally.”

AR Packaging’s team will join Graphic Packaging and continue to develop and offer sustainable packaging solutions for global consumers.

BofA Securities is acting as financial advisor to Graphic Packaging for the deal, while DLA Piper is serving as the company’s legal counsel.

AR Packaging is receiving financial advice from Credit Suisse International, with Roschier acting as its legal counsil.

Earlier this year, Graphic Packaging took over a full interest in its partnership with International Paper, effectively ending the partnership.

The company previously held 79.5% of the partnership and acted as its sole manager, with International Paper owning the remaining 20.5%.