Contego Packaging has finalised details of the sale of its European food and beverage cartons business to Graphic Packaging, for £71m.
Under the terms of the deal, Graphic Packaging will also assume about £10m in net liabilities in an all-cash transaction, to be funded with existing cash and debt under its current revolving line of credit.
According to Contego, the acquisition has been approved by the Office of Fair Trading (OFT).
Contego's food and beverage cartons business in the UK, the Netherlands and Ireland includes its sites at Leeds, Gillingham, Hoogerheide and Portlaoise.
The company's ownership and growth strategy of the healthcare business will remain the same, and it will continue to expand through organic and acquisitive growth.
Graphic Packaging president and chief executive officer David Scheible said the acquisition of Contego's Food and Consumer Carton business extends the company into new end markets, expands its global footprint and provides new growth opportunities.
"Contego operates throughout Western Europe with state of the art facilities in the UK and the Netherlands," Scheible said.
The addition of the existing European business of Graphic Packaging focused in the beverage markets to the Contego's market share position in the European food and consumer products markets will allow Graphic Packaging to widen its customer base.
Graphic Packaging, which has a turnover of $4bn, has seven paperboard mills, 44 converting plants and three machinery facilities.
The company has businesses in Australia, Brazil, Canada, China, England, France, Germany, Japan, Mexico, Spain and the US.