Graphic Packaging has agreed to acquire Canada-based Seydaco Packaging and its affiliates for an undisclosed sum.
Under the deal, the company’s wholly-owned subsidiaries Graphic Packaging International and Graphic Packaging International Canada will acquire the assets of
Seydaco manufactures folding carton products for the foodservice, food, personal care, and household goods markets.
It also provides advanced graphics for the manufacturers of cake, pie, pastry and pizza cartons.
The company, which converts around 20,000 tons of paperboard per annum, operates three converting plants situated in Mississauga of Ontario, St.-Hyacinthe of Québec and Xenia of Ohio.
Subject to standard closing requirements, the deal is expected to complete in the fourth quarter of this year.
Graphic Packaging president and CEO Michael Doss said: "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.”
Seydaco president David Seychell said: “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."
Based in Atlanta of Georgia, Graphic Packaging offers paper-based packaging solutions for different products of the food, beverage and other consumer product companies.
In October, Graphic Packaging agreed to combine with International Paper’s (IP) North American consumer packaging business to create a $6bn paper-based packaging firm.
IP’s North America consumer packaging business is a $1.6bn revenue generated business, which produces solid bleached sulfate (SBS) paperboard and paper-based foodservice products.
Image: Seydaco produces folding carton products for the foodservice, food, personal care and household goods markets. Photo: courtesy of Master isolated images / FreeDigitalPhotos.net.