ATLANTA—Graphic Packaging Holding Company has announced that its wholly-owned subsidiary Graphic Packaging International, Inc. has agreed to acquire substantially all the assets of Carton Craft Corporation and its affiliate Lithocraft, Inc.
Carton Craft is an independent converter focused on the production of paperboard based air filter frames and folding cartons, and operates two converting plants in New Albany, Indiana.
The combined businesses generated revenues of approximately $70 million and strong converting EBITDA margins on an LTM basis. Synergies from the acquisition will be driven by the integration of additional CUK paperboard tons and cost efficiencies.
“The announced transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets, provide a runway for further margin improvement, and that we can close at compelling post-synergy EV/EBITDA multiples,” says Graphic Packaging president and chief executive officer Michael Doss.
The acquisition is subject to standard closing requirements and regulatory review and is expected to close in the second quarter 2017.
About Graphic Packaging Holding Company
Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, is a leading provider of paper-based packaging solutions for a wide variety of products to food, beverage and other consumer product companies., and is one of the largest producers of folding cartons in the U.S., holding leading market positions in coated unbleached kraft paperboard and coated-recycled paperboard. Additional information about Graphic Packaging, its business and its products is available at www.graphicpkg.com.
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