PaperAge Magazine

Graphic Packaging Completes Acquisition of Letica Foodservice Assets

Letica hot paper cups Letica Foodservice is focused on the production of paperboard-based cold and hot cups and cartons for the growing foodservice market in North America.

Oct. 3, 2018 - Graphic Packaging Holding Company on Oct. 1 announced that its subsidiary, Graphic Packaging International, LLC, has completed the previously announced acquisition of substantially all the assets of the foodservice business of Letica Corporation, a subsidiary of RPC Group PLC.

Letica Foodservice is focused on the production of paperboard-based cold and hot cups and cartons for the growing foodservice market in North America. The company operates two world class foodservice converting facilities in Clarksville, Tennessee and Pittston, Pennsylvania.

The business generated $110 million in revenue and converted approximately 40 thousand tons of solid bleached sulfate ("SBS") paperboard in the twelve months ended 6/30/2018.

According to Graphic Packaging, synergies from the acquisition will be driven by the integration of additional SBS paperboard tons, lower logistics costs, and other cost efficiencies. On a post-synergy basis, the EV/EBITDA multiple for this transaction is expected to be approximately 6.0X.

Graphic Packaging Holding Company, 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