Graphic Packaging to Sell Multi-wall Bag Business to Mondi for $105 Million
The sale includes Graphic Packaging's 9 Multi-wall Bag converting plants located throughout the United States and the Pine Bluff, Arkansas kraft paper mill.
June 3, 2014 - Graphic Packaging Holding Company today announced that it and its wholly owned subsidiary Graphic Packaging International, Inc., have entered into a definitive agreement to sell their Multi-wall Bag business to Mondi Group. The non-core assets to be divested include 9 Multi-wall Bag converting plants located throughout the United States and the Pine Bluff, Arkansas kraft paper mill.
"The anticipated sale of these non-core assets substantially completes our transformation into a pure play, vertically integrated paperboard packaging company," said David Scheible, Graphic Packaging's Chairman, President and CEO.
"The divestiture will free up valuable resources which we can redirect to further accelerate global growth in our core paperboard packaging business," he added.
The Multi-Wall Bag plants and the kraft mill had trailing twelve month revenue of approximately $437 million and under the terms of the agreement, the enterprise value is $105 million and the sale will be an all cash transaction.
Mondi, a leading global supplier of kraft paper and industrial bags, operates a network of 36 industrial bags plants in Europe, the Middle East, North Africa, South-East Asia and North America, including four plants in Mexico and the US, and 5 kraft paper mills in Europe producing over 1 million tonnes per year.
David Hathorn, CEO of Mondi Group, commented, “The combination of the Business with Mondi's existing network will create a leading bags player in North America and expand the Group's growing global footprint in this market.
"I am confident that the synergies expected from the Acquisition, coupled with Mondi's proven expertise as a leading global kraft paper and industrial bags producer, will ensure that the combined business delivers strongly.”
The deal is subject to standard closing requirements and is expected to close late second quarter or early third quarter 2014.
To learn more about Mondi, please visit: www.mondigroup.com.
To learn more about Graphic Packaging, please visit: www.graphicpkg.com.
SOURCE: Graphic Packaging Holding Company and Mondi Group