The European subsidiary of the US-based packaging solutions provider Graphic Packaging has completed the approximately $165m acquisition of the business of UK-based food and healthcare packaging manufacturer Benson Group.
According to Graphic Packaging, the addition of Benson Group to its existing European folding carton business will increase sales to more than $700m.
Graphic Packaging chairman, president and CEO David Scheible said that the combination allows the company to broaden its customer base in addition to offering a range of new products and services to its existing global customers.
"Like our strategy in the US, we are committed to growing our European business around food and beverage end markets and optimising our supply chain footprint around our customers' needs," Scheible added.
The acquisition also provides an opportunity to further integrate the company's coated unbleached kraft paperboard. Graphic Packaging's business will also be extended into the store brand market.
It will add in excess of 200 customers and around 940 employees to Graphic Packaging, and is expected to generate $5m to $7m of synergies over the next 18 months.
Benson Group has trailing twelve month sales of approximately $200m, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of nearly $25m. It operates four folding carton facilities in the UK that annually convert around 80,000t of paperboard.
Image: The acquisition of Benson will improve Graphic Packaging's European folding carton business. Photo: courtesy of Master isolated images / FreeDigitalPhotos.net.