PaperAge Magazine

Graphic Packaging Agrees to Acquire Carton Craft Corporation

Graphic Packaging

June 13, 2017 - Graphic Packaging Holding Company today announced that its wholly owned subsidiary, Graphic Packaging International, Inc., has agreed to acquire substantially all the assets of Carton Craft Corporation and its affiliate Lithocraft, Inc.

Terms of the deal were not disclosed

Carton Craft is an independent converter focused on the production of paperboard based air filter frames and folding cartons, and operates two converting plants in New Albany, Indiana.

The combined businesses generated revenues of approximately $70 million and strong converting EBITDA margins on an LTM basis. Synergies from the acquisition will be driven by the integration of additional CUK paperboard tons and cost efficiencies. On a post-synergy basis, the EV/EBITDA multiple for this transaction is expected to be below 6.0X.

"The announced transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets, provide a runway for further margin improvement, and that we can close at compelling post-synergy EV/EBITDA multiples," said Graphic Packaging 's President and CEO Michael Doss.

The acquisition is subject to standard closing requirements and regulatory review and is expected to close in the second quarter 2017.

Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, is a leading provider of packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The Company is one of the largest producers of folding cartons and holds a leading market position in coated-unbleached kraft and coated-recycled board. To learn more about Graphic Packaging, please visit: www.graphicpkg.com.

SOURCE: Graphic Packaging Holding Company