The deal will allow Graphic Packaging to increase its stake from around 81.1% to 85.5% in Graphic Packaging International Partners
Graphic Packaging Holding Company has announced the acquisition of International Paper’s minority stake in its subsidiary Graphic Packaging International Partners for $250m.
International Paper announced its intention to continue the monetisation process of its ownership interest in Graphic Packaging International Partners.
Graphic Packaging International Partners to acquire around 17.4 million partnership units from International Paper
Under the deal, Graphic Packaging has agreed to purchase around 17.4 million partnership units from International Paper.
The deal allows Graphic Packaging to increase its stake from around 81.1% to 85.5% in Graphic Packaging International Partners.
Graphic Packaging has decided to fund the purchase with cash on hand, in addition to using the domestic revolving credit facility.
The latest transaction represents Graphic Packaging Holding Company’s second $250m acquisition of International Paper’s interest.
In January this year, Graphic Packaging has agreed to acquire approximately 15.1 million partnership units from International Paper for $250m.
The deal has reduced International Paper’s stake in the partnership from approximately 21.6% to 18.3%.
In January 2018, International Paper completed the transfer of its North America Consumer Packaging business to Graphic Packaging.
In October 2017, Graphic Packaging agreed to combine with International Paper’s North American consumer packaging business.
International Paper’s North America consumer packaging business manufactures solid bleached sulfate (SBS) paperboard and paper-based foodservice products.
In April this year, Graphic Packaging, via its US operating firm Graphic Packaging International, closed the acquisition of Consumer Packaging Group (CPG) business from Greif, an industrial packaging products and services provider, for around $85m.
Based in Atlanta of Georgia, Graphic Packaging Holding offers paper-based packaging solutions for a range of products related to food, beverage, foodservice, and other consumer product companies.
The company is a major provider of folding cartons and paper-based foodservice products in the US, as well as owns a significant market share in coated recycled paperboard, coated unbleached kraft paperboard and solid bleached sulfate paperboard.