Graphic Packaging to acquire Canada’s Seydaco Packaging

13 November 2017 (Last Updated November 13th, 2017 11:00)

Graphic Packaging has agreed to acquire Canadian firm Seydaco Packaging and its affiliates National Carton and Coating and Groupe Ecco Boites Pliantes Ltée.

Graphic Packaging has agreed to acquire Canadian firm Seydaco Packaging and its affiliates National Carton and Coating and Groupe Ecco Boites Pliantes Ltée.

Folding carton producer Seydaco converts nearly 20,000t of paperboard a year and caters to multiple industries, including the foodservice, food, personal care and other household goods market segments.

It operates converting plants in Mississauga, Ontario, St.-Hyacinthe, Québec, and Xenia, Ohio.

“The announced transaction is consistent with our strategy to pursue acquisitions that allow us to grow our folding carton volume in attractive geographies and end-markets.”

The company generated around $40m in revenues with low double-digit EBITDA margins on an LTM basis.

Graphic Packaging president and CEO Michael Doss said: “The announced transaction is consistent with our strategy to pursue acquisitions that allow us to grow our folding carton volume in attractive geographies and end-markets, improve our cost position, increase our mill to converting plant integration levels over time, and that we can close at compelling post-synergy EV/EBITDA multiples.”

The acquisition is expected to improve the paperboard manufacturing capacity of Graphic Packaging and generate significant cost-efficiencies.

Following the combination, the EV/EBITDA multiple for the deal is expected to be below 6.0X.

Seydaco president David Seychell said: “Our history of providing customers with high-quality, value-added packaging solutions and our speed to market philosophy, combined with their strong, global position, will bring much-added value to the paperboard packaging marketplace.”

Subject to customary closing conditions, the acquisition is expected to close by the last quarter of this year.