Graphic Packaging Holding Company has announced its intentions to acquire Americraft Carton, a folding carton producer in North America, for approximately $280 million.
Americraft Carton manufactures all styles of paperboard folding carton for a variety of industries including food, food service, pet food and pharmaceutical.
The deal – which includes seven converting facilities and Americraft Carton’s team of employees – will enable Graphic Packaging to extend its position into new and existing end markets.
The company made the announcement as part of its first-quarter 2021 results, in which it posted net sales of $1.65 million, representing a 2% organic increase.
“We are focused on capturing ongoing organic growth from the continued move to more circular and sustainable packaging alternatives and achieving our Vision 2025 for all stakeholders,” said Michael Doss, Graphic Packaging’s president and CEO.
Upon completion, Graphic Packaging says the acquisition is expected to add approximately $200 million in sales, $30 million in Adjusted EBITDA and significant opportunities for paperboard integration.
Doss added: “Today, I am very pleased to announce our intent to acquire Americraft Carton, a company built on a long history of sustainability and exceptional customer service.
“Their business philosophy is aligned with how we lead our business. The combination extends our end markets and customer base, further strengthening our position as the leading, integrated paperboard packaging provider in North America.”
Last year, Graphic Packaging purchased the consumer packaging group business of Greif for approximately $85m.
© FoodBev Media Ltd 2020
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