Consumer products packaging provider Graphic Packaging has signed an agreement to acquire Omaha packaging plant in the US from marketing solutions provider Quad/Graphics.
Located in Omaha, Nebraska, the approximately 400,000ft² converting facility is valued at $40m.
The folding carton facility consumes approximately 40,000t of paperboard and generates approximately $75m in revenue.
For Quad, the divestiture is part of the company’s plan to focus on higher value packaging solutions. The earnings from the transaction will facilitate the company’s debt.
The deal is expected to be completed on 31 January 2020.
Quad chairman, president and CEO Joel Quadracci said: “The Omaha plant’s focus on high-volume, low-cost converting for folding cartons is a great fit with a vertically integrated supplier like Graphic Packaging, which operates both paperboard mills and converting facilities.
“This divestiture allows us to focus on our higher value packaging solutions that help clients create a cohesive brand experience across all channels from consumer packaging to print, broadcast and digital advertising to in-store signage and displays.”
In a separate development, Graphic Packaging revealed that International Paper notified its intent to begin the process of reducing its ownership in Graphic Packaging International Partnership.
Graphic Packaging acquired approximately 15.1 million partnership units from International Paper for $250m.
The deal will reduce International Paper’s ownership in the Partnership to 18.3%.
Graphic Packaging supplies paper-based packaging solutions for multiple sectors including food, beverage and foodservice.
In August 2019, the company decided to invest $600m in a new coated recycled board (CRB) machine in the US Midwest region.