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June 13, 2017

Graphic Packaging to acquire Carton Craft

Graphic Packaging International, a wholly-owned subsidiary of Graphic Packaging Holding Company, has agreed to acquire the assets of US-based independent converter Carton Craft and its affiliate Lithocraft.

Graphic Packaging International, a wholly-owned subsidiary of Graphic Packaging Holding Company, has agreed to acquire the assets of US-based independent converter Carton Craft and its affiliate Lithocraft.

Carton Craft, which produces paperboard based air filter frames and folding cartons, operates two converting plants in New Albany, Indiana, US.

The combined businesses generated revenues of nearly $70m and strong converting earnings before interest, tax, depreciation and amortisation (EBITDA) margins on an LTM basis.

Graphic Packaging Holding Company president and CEO Michael Doss said: “The announced transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets, provide a runway for further margin improvement, and that we can close at compelling post-synergy EV / EBITDA multiples.”

"The announced transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets."

Synergies from the acquisition will be driven by the integration of additional coated unbleached kraft (CUK) paperboard, as well as cost efficiencies.

Subject to standard closing requirements and regulatory approvals, the acquisition is expected to close in this quarter.

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With its headquarters in Atlanta, Graphic Packaging provides paper-based packaging solutions for a variety of food and beverage products.

Operating on a global basis, the company manufactures folding cartons in the US.

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