US-based packaging company Graphic Packaging has ended its partnership with International Paper, Graphic Packaging International Partners.

The company has acquired the final tranche of the membership interests that International Paper had held in the two companies’ partnership, meaning it now owns 100% of the partnership.

In January 2018, Graphic Packaging partnered with International Paper’s North America consumer packaging business to form Graphic Packaging International Partners.

Until now, Graphic Packaging owned 79.5% of the partnership and was its sole manager, while International Paper owned the remaining 20.5%.

Under the latest transaction, 22,773,072 membership units were exchanged for an equivalent number of Graphic Packaging common stock shares.

Following the transaction, the total number of the company’s common stock outstanding shares is around 306.9 million.

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Graphic Packaging president and CEO Michael Doss said: “The partnership with International Paper played an important role as we established our leadership position in fibre-based consumer packaging across all three paperboard substrates.

“The highly integrated model we have built enables us to serve a broad set of global customers with new and innovative packaging solutions, positioning us to achieve the ambitious growth and return goals established in Vision 2025.

“Through the combination with International Paper’s consumer packaging business, along with our other organic and inorganic growth initiatives, we have built scale across all three paperboard substrates.

“We have unique flexibility to quickly meet changing demand patterns for sustainable packaging solutions and deliver value for all stakeholders.”

Doss said that the partnership had been mutually beneficial and provided returns for both companies.

Graphic Packaging provides sustainable fibre-based packaging solutions for various sectors, including the food, beverage and foodservice industries.

Earlier this month, the company agreed to buy European fibre-based packaging producer AR Packaging in a deal worth almost $1.45bn in cash.

The transaction is estimated to add $1.1bn in annual sales for Graphic Packaging and $160m in annual adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA).

The companies’ integration is also expected to result in $40m total synergies over the 36 months following the deal’s completion.