Graphic Packaging has put forward plans to acquire North American folding carton manufacturer Americraft Carton.

The deal, valued at around $280m, includes seven Americraft Carton converting facilities and all the company’s employees.

Americraft Carton specialises in manufacturing paperboard folding carton for various industries, including the food, food service, pet food and pharmaceutical sectors.

Upon completion of the deal, Graphic Packaging is expected to generate around $200m in sales, $30m in adjusted EBITDA, and other opportunities for paperboard integration.

The combined entity will contribute an additional $10m of adjusted EBITDA within 24 months of the deal closing.

With the acquisition, Graphic Packaging aims to expand its position into new and existing end markets.

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Graphic Packaging president and CEO Michael Doss said: “I am very pleased to announce our intent to acquire Americraft Carton, a company built on a long history of sustainability and exceptional customer service.

“Their business philosophy is aligned with how we lead our business. The combination extends our end markets and customer base, further strengthening our position as the leading, integrated paperboard packaging provider in North America.”

The announcement was made as Graphic Packaging reported its results for the first quarter of the year.

The company reported net sales of $1.65bn, compared to $1.59bn in the first quarter of last year.

Net income for the quarter was $54m, against a loss of $13m a year prior, while earnings per diluted share were $0.19, an increase from $0.04.

During the quarter, the company acquired $400m of International Paper’s minority ownership interest in the partnership.

Doss said: “During the first quarter we continued to deliver on our ambitious growth strategy, increasing net organic sales by 2%.

“Our team’s agility and resolve in executing on our commitments to customers, coupled with the competitive advantages of our vertically integrated platform, allow us to provide continuity of supply while managing a challenging supply chain environment.”

Last month, Graphic Packaging announced plans to make multiple machinery investments in several of its European and Australian locations.

With the investments, the company will install its PaperSeal tray machinery in company and partner locations across Ireland, Scotland, Spain, Greece and Australia.