Graphic Packaging Agrees to Acquire Seydaco Packaging Corp. and its Affiliates
Seydaco is a folding carton producer with a leading position in Canada focused on the foodservice, food, personal care, and household goods markets. The company converts approximately 20,000 tons of paperboard annually.
Nov. 9, 2017 - Graphic Packaging Holding Company today announced that its wholly-owned subsidiaries, Graphic Packaging International, Inc. and Graphic Packaging International Canada, ULC, have agreed to acquire the assets of Seydaco Packaging Corp. and its affiliates National Carton and Coating Co., and Groupe Ecco Boites Pliantes Ltée.
Seydaco is a folding carton producer with a leading position in Canada focused on the foodservice, food, personal care, and household goods markets. Seydaco converts approximately 20,000 tons of paperboard annually and operates three converting plants located in Mississauga, Ontario, St.-Hyacinthe, Québec, and Xenia, Ohio.
The business generated revenues of approximately $40 million and low double digit EBITDA margins on an LTM basis. Synergies from the acquisition will be driven by the integration of additional 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 grow our folding carton volume in attractive geographies and end-markets, improve our cost position, increase our mill to converting plant integration levels over time, and that we can close at compelling post-synergy EV/EBITDA multiples," said President and CEO Michael Doss.
David Seychell, President of Seydaco, said, "We are delighted to join Graphic Packaging. Our employees and customers will truly benefit from this transaction. Our history of providing customers with high-quality, value added packaging solutions and our speed to market philosophy combined with their strong, global position will bring much added value to the paperboard packaging marketplace."
The acquisition is subject to standard closing requirements and is expected to close in the fourth 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