Graphic Packaging Holding is to buy all the assets of Artistic Carton, a package manufacturing firm that operates three facilities in the US.
Artistic Carton has one coated recycled paperboard facility in White Pigeon, Michigan, with an approximate annual capacity of 70,000t. It also owns two converting facilities in Auburn, Indiana and Elgin, Illinois.
The company produces, converts and distributes folding cartons to various customers across the retail gift boxes, dry and frozen foods, health and beauty, automotive, hardware, housewares and pet products industries.
Graphic Packaging president and CEO Michael Doss said: “We are pleased to announce the acquisition of Artistic Carton as it will provide compelling optimisation and growth opportunities for our paperboard mill and converting platforms in North America.
“The acquisition will drive converting end-market diversification, enhance our converting platform, and we expect will allow us to deliver significant synergies driven by paperboard integration, mill and converting manufacturing optimisation and supply chain efficiencies.”
The transaction is subject to standard closing conditions and is expected to be concluded in the third quarter of this year.
Graphic Packaging has also reported net sales of $1.55bn for the second quarter of this year, which ended 30 June this year. That compares to $1.51bn for the same period in 2018.
Additionally, the company reported a net income of $63.8m for the second quarter, compared to $49.4m in the prior-year period.
In October last year, Graphic Packaging paid £95m to acquire all assets of Letica, the foodservice business of RPC Group.