ATLANTA, Feb. 27, 2020 /PRNewswire/ -- Graphic
Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the
"Company"), a leading provider of packaging solutions to food,
beverage, foodservice, and other consumer products companies,
through its primary U.S. operating company, Graphic Packaging
International, LLC., announced today it has entered into a
definitive agreement to acquire the Consumer Packaging Group
business from Greif, Inc. for approximately $85 million. The transaction is expected to close
in the first quarter of 2020, subject to standard closing
conditions. Graphic Packaging will acquire seven converting
facilities across the U.S. that produce over $200 million in annual revenue. The business is
expected to generate approximately $20
million in annualized EBITDA, including synergies, over the
24-month period after the successful completion of the
acquisition.
President and CEO Mike Doss said,
"We are excited to announce the acquisition of the Consumer
Packaging Group business from Greif, Inc. The transaction further
diversifies our end-markets and enhances our service capabilities
to growing mid-sized consumer goods and food service customers."
Doss added, "The continued strategic investments we are making in
our integrated mill and converting platform reflect our commitment
to existing and new customers to provide the industry's most
efficient production of the highest quality paperboard into
sustainable packaging solutions."
Graphic Packaging has also assessed the impact of recently
announced RISI Pulp and Paper market price changes and its current
expectations for commodity input cost inflation. The Company
remains committed to its 2020 Adjusted EBITDA and cash flow
guidance provided on the fourth quarter and full year 2019
financial results call held January 28,
2020. Graphic Packaging will update 2020 projections to
include the Consumer Packaging Group acquisition from Greif, Inc.
after the successful completion of the transaction.
Forward Looking Statements
Any statements of the
Company's expectations in this press release, including but not
limited to the timing and terms for the acquisition of the Consumer
Packaging Group business from Greif, Inc. and its projected revenue
and profitability, constitute "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
Such statements are based on currently available information and
are subject to various risks and uncertainties that could cause
actual results to differ materially from the Company's present
expectations. These risks and uncertainties include, but are not
limited to, inflation of and volatility in raw material and energy
costs, continuing pressure for lower cost products, the Company's
ability to implement its business strategies, including
productivity initiatives, cost reduction plans, and integration
activities, as well as the Company's debt level, currency movements
and other risks of conducting business internationally, the impact
of regulatory and litigation matters, including the continued
availability of the Company's net operating loss offset to taxable
income. Undue reliance should not be placed on such forward-looking
statements, as such statements speak only as of the date on which
they are made and the Company undertakes no obligation to update
such statements, except as required by law. Additional information
regarding these and other risks is contained in the Company's
periodic filings with the SEC.
About Graphic Packaging Holding Company
Graphic
Packaging Holding Company (NYSE: GPK), headquartered in
Atlanta, Georgia, is committed to
providing consumer packaging that makes a world of difference. The
Company is a leading provider of paper-based packaging solutions
for a wide variety of products to food, beverage, foodservice, and
other consumer products companies. The Company operates on a global
basis, is one of the largest producers of folding cartons and
paper-based foodservice products in the
United States, and holds leading market positions in coated
recycled paperboard, coated unbleached kraft paperboard and solid
bleached sulfate paperboard. The Company's customers include many
of the world's most widely-recognized companies and brands.
Additional information about Graphic Packaging, its business and
its products is available on the Company's web site at
www.graphicpkg.com.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/graphic-packaging-holding-company-signs-definitive-agreement-to-acquire-the-consumer-packaging-group-business-from-greif-inc-reaffirms-2020-guidance-301012313.html
SOURCE Graphic Packaging Holding Company