Graphic Packaging, through its wholly owned subsidiary, Graphic Packaging International, has reached an agreement to acquire all the assets of die-cuts manufacturing company PFP and its related entity PFP Dallas Converting.
Founded in 1999, PFP is a converter engaged in the production of paperboard-based air filter frames, with strong earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins.
The acquisition will give Graphic Packaging access to the company’s manufacturing facilities in Lebanon, Tennessee and Lancaster, Texas.
So far, PFP converted around 18,000t of paperboard, primarily coated unbleached kraft (CUK).
Graphic Packaging president and CEO Michael Doss said: “The PFP acquisition extends our leading position in the growing paperboard-based air filter frame market, which we established with the acquisition of Carton Craft in July 2017.
“The transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets at compelling post-synergy EV/EBITDA multiples.”
The acquisition is expected to result in synergies, driven by the integration of additional CUK paperboard tonnes and cost efficiencies.
Graphic Packaging provides paper-based packaging solutions, serving food, beverage, foodservice, and other consumer products companies, with a wide range of products.
Some of the products produced by the company include folding cartons, paper-based foodservice products, solid bleached sulphate paperboard, coated unbleached kraft paperboard and coated recycled paperboard.
In January this year, the company closed the merger of its existing businesses with International Paper’s consumer packaging business in North America to form an integrated paper-based packaging firm with estimated revenue of around $6bn.
The deal gives Graphic Packaging a 79.5% in the combined entity, while the remaining interest is held by International Paper.