Graphic Packaging International has completed the acquisition of all the assets of the foodservice business of Letica , a subsidiary of RPC Group, for $95m.
Image: Graphic Packaging International completes acquisition of all the assets of the foodservice business of Letica. Photo: courtesy of Photo by rawpixel on Unsplash.
Letica Foodservice manufactures paperboard-based cold and hot cups and cartons for the foodservice market in North America.
The company operates two foodservice converting plants in Clarksville, Tennessee and Pittston, Pennsylvania.
The Letica foodservice business generated $110m in revenue and converted about 40 thousand tons of solid bleached sulfate (SBS) paperboard in the twelve months ended 30 June 2018.
When the agreement was signed in August 2018, Graphic Packaging said synergies from the acquisition will be driven by the integration of additional SBS paperboard tons, lower logistics costs, and other cost efficiencies.
The deal expands Graphic Packaging’s paperboard-based foodservice platform in North America.
The transaction will further diversify Graphic Packaging’s customer base, improve its geographic footprint, and provide required capacity to meet the incremental demand for paper cups resulting from the ongoing shift out of polystyrene foam, the company said when the deal was signed.
Graphic Packaging International is the subsidiary of Graphic Packaging Holding Company, headquartered in Atlanta, Georgia.
Graphic Packaging provides paper-based packaging solutions for several products to food, beverage, foodservice, and other consumer products companies.
The company, which operates on a global basis, produces folding cartons and paper-based foodservice products in the US.
Graphic Packaging International agreed to acquire substantially all the assets of PFP and its related entity PFP Dallas Converting.
PFP is an independent converter focused on the production of paperboard-based air filter frames, and operates two manufacturing facilities in Lebanon, Tennessee and Lancaster, Texas.
Earlier this year, Graphic Packaging Holding Company completed the combination of Graphic Packaging’s existing businesses with International Paper’s North America Consumer Packaging business.
Graphic Packaging owns 79.5% of the combined company and will be the sole manager. International Paper will own 20.5% of the combined company.
Graphic Packaging has assumed $660m of International Paper debt and concurrently has amended and restated its senior secured credit agreement.