Graphic Packaging Holding has agreed to acquire Artistic Carton Company, a US-based producer of folding cartons and coated recycled paperboard, for an undisclosed sum.
Image: Graphic Packaging has agreed to acquire Artistic Carton Company. Photo: courtesy of Adam Radosavljevic from Pixabay.
Under the deal, Graphic Packaging subsidiary will acquire all the assets of Artistic Carton, including one coated recycled paperboard (CRB) mill and two converting facilities.
With an annual production capacity of 70,000 tonnes, the company has a CRB mill in White Pigeon of Michigan. The converting facilities are situated in Auburn of Indiana and Elgin of Illinois.
Artistic Carton has worked with multiple retailers to design gift boxes. It also offers a variety of treatments for the package ranging from matte and gloss coatings to tactile finishes and embossing to foil stamping.
The business reported $63m (£50m) revenue in the last fiscal year ended on 30 June this year and is expected to generate around $10m (£8m) in annualised EBITDA.
Subject to standard closing conditions, the deal is expected to be completed in the third quarter of this year.
Graphic Packaging Holding president and CEO Michael Doss said: “We are pleased to announce the acquisition of Artistic Carton as it will provide compelling optimisation and growth opportunities for our paperboard mill and converting platforms in North America.
“The acquisition will drive converting end-market diversification, enhance our converting platform, and we expect will allow us to deliver significant synergies driven by paperboard integration, mill and converting manufacturing optimization, and supply chain efficiencies.”
Graphic Packaging has also reported that its net sales increased by 3% in the second quarter of this year to $1.55bn (£1.24bn) compared to $1.51bn (£1.21bn) during the same period last year.
According to the company, the $41.9m (£33.6m) increase was boosted by $39.8m (£31.9m) of higher pricing and $16.3m (£13.09m) of improved volume/mix related to acquisitions.
The company’s net income was $63.8m (£51.2m) in the second quarter of this year, while it was $49.4m (£39.6m) in the prior-year period.
Based in Atlanta, Georgia, Graphic Packaging offers paper-based packaging solutions for different products of the food, beverage, foodservice, and other consumer products companies.