As part of the deal, Graphic Packaging will acquire Americraft Carton’s seven converting facilities and a team of dedicated employees
Graphic Packaging has agreed to acquire Americraft Carton. (Credit: Gerd Altmann from Pixabay)
Fibre-based packaging solutions provider Graphic Packaging Holding Company has announced that intends to acquire US-based Americraft Carton for around $280m.
Under the deal, Graphic Packaging will acquire Americraft Carton’s seven well-capitalised converting facilities and a team of dedicated employees.
Americraft Carton offers all styles of paperboard folding cartons, including seal end, tuck top, reverse tuck, straight tuck, four and six beer trays, sleeves, simplex trays and end caps.
The company’s folding cartons can also be integrated with special features such as windows, UV printing and coatings, embossing and foil stamping.
Americraft Carton also offers a range of other paperboard products such as display cards, clamshell insert cards, sleeves and bands, blister cards and security tags.
The proposed deal is expected to add around $200m in sales and $30m in adjusted EBITDA, in addition to significant chances for paperboard integration upon completion.
The fibre-based packaging firm has also stated that synergies are believed to contribute an additional $10m of adjusted EBITDA within four months of closing.
Graphic Packaging has reported a net income of $54m for the first quarter of 2021, compared to a net loss of $13m for the same period last year.
The company has announced that its net sales have been increased by 3% to $1.64bn in the first quarter of 2021, compared to $1.59bn in the prior-year quarter.
Graphic Packaging Holding president and CEO Michael Doss said: “Consumer preferences for sustainable packaging are driving global demand for fibre-based packaging solutions.
“We are meeting this demand by introducing new innovative products and supporting our customers as we answer the calls from today’s consumer. During the first quarter, we continued to deliver on our ambitious growth strategy, increasing net organic sales by 2%.”
In August last year, Graphic Packaging agreed to acquire International Paper’s minority stake in its subsidiary Graphic Packaging International Partners for $250m.