The combined firm is expected to have continued organic growth opportunities across existing and new global customers and markets
Graphic Packaging has agreed to acquire fibre-based consumer packaging solutions provider AR Packaging from CVC Capital Partners Fund VI for $1.45bn.
Based in Lund, Sweden, AR Packaging manages four divisions and seven business segments to better serve its customers.
With a range of packaging solutions, design expertise and expanded geographic stretch, the combined company is expected to have continued organic growth opportunities across existing and new global customers and markets.
The proposed acquisition of AR Packaging is anticipated to add around $1.1bn in annual sales, as well as $160m in annual adjusted EBITDA.
Graphic Packaging president and CEO Michael Doss said: “AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe.
“Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fibre-based consumer packaging solutions with long histories of innovation and creative packaging design.”
AR Packaging’s business divisions include branded products, healthcare and beauty packaging, food packaging, as well as systems divisions.
The firm’s branded packaging division provides packaging solutions for branded consumer goods. It includes two business segments tobacco and confectionery.
The healthcare and beauty division provides premium packaging solutions to the beauty, pharma, food and confectionery industry. It consists of two business segments – beauty and pharmaceuticals.
The food packaging division, which offers sustainable solutions, includes two business segments – foodservice and food and consumer goods.
AR Packaging’s system division offers barrier composite cans that are suitable for products that require both effective protection and value-adding presentation for consumers.
With net sales of around $1.1bn, the company employs around 5,000 people and manages 30 factories in 13 countries.
Subject to regulatory approvals and other customary closing conditions, the deal is expected to be completed between four and six months.
BofA Securities is acting as financial advisor and DLA Piper is serving as legal counsel to Graphic Packaging. Credit Suisse International is acting as a financial advisor, while Roschier is serving as legal counsel to AR Packaging.