David Scheible, Graphic Packaging’s president and CEO, said: “We are excited about combining our multi-wall bag and specialty plastics packaging assets with those of Delta Natural Kraft and Mid-America Packaging.
“The combined entity further strengthens our position as a provider of these products, while vertically integrating our converting assets with the kraft paper production capacity of Delta Natural Kraft. The combination will allow us to better serve our customers through the expanded operations, yield numerous synergy opportunities, and position us well for a rebound of the end markets served by these products. We are also pleased to have Mark Van Dame, CEO of Delta Natural Kraft and Mid-America Packaging, and his leadership team join the Graphic Packaging family.”
Under the terms of the transaction, Graphic Packaging formed a new limited liability company and contributed the assets of its multi-wall bag and specialty plastics packaging businesses and CVI contributed its ownership interests in DNK and MAP to the newly formed company.
Neither party received cash consideration as part of the transaction. However, the new company assumed approximately $25m in third party debt of DNK and MAP. The transaction was structured as a tax free combination and will allow for tax efficient distribution of profits to the owners of the newly created entity.
Source: Graphic Packaging Holding Company
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