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.
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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.”
Synergies from the acquisition will be driven by the integration of additional coated unbleached kraft (CUK) paperboard, as well as cost efficiencies.
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Subject to standard closing requirements and regulatory approvals, the acquisition is expected to close in this quarter.
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By GlobalDataWith 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.
