Graphic Packaging Holding Company has agreed to acquire the consumer packaging group business of Greif for approximately $85 million.
As part of the deal, Graphic Packaging will purchase seven facilities across the US that manufacture folding cartons and produce more than $200 million in annual revenue.
The acquisition, which is being carried out through the Graphic Packaging International business, is expected to close by the end of March.
Graphic Packaging CEO Mike Doss said: “The transaction further diversifies our end-markets and enhances our service capabilities to growing mid-sized consumer goods and foodservice customers.
“The continued strategic investments we are making in our integrated mill and converting platform reflect our commitment to existing and new customers to provide the industry’s most efficient production of the highest quality paperboard into sustainable packaging solutions.”
Greif, as US-headquartered industrial packaging products supplier, expects to use the proceeds for debt repayment.
“We are pleased with the conclusion of the CPG strategic review process,” said Pete Watson, Greif CEO. “The sale of CPG allows us to de-lever our balance sheet and optimise capital allocation plans.
“By divesting these assets, we can refocus our business on our core industrial franchise and our stated strategic growth priorities in intermediate bulk container production and reconditioning and containerboard integration.”
Earlier this week, Graphic Packaging said it had expanded its Sneek facility in the Netherlands as part of a €20 million investment to meet the increased demand for sustainable packaging.
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