Graphic Packaging International, a leading provider of packaging solutions to food, beverage and consumer product companies, agreed to acquire substantially all the assets of Carton Craft Corporation and its affiliate Lithocraft, Inc.
The acquisition is subject to standard closing requirements and regulatory review and is expected to close in the second quarter 2017.
The combined businesses generated revenues of approximately USD 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. On a post-synergy basis, the EV/EBITDA multiple for this transaction is expected to be below 6.0X.
Michael Doss, Graphic Packaging’s President and CEO, commented:
“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.”
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.
In 1Q2017 Graphic Packaging decreased Adjusted EBITDA margin to 15.2%
Earlier Graphic Packaging declared a quarterly dividend of USD 0.075 per share.
The company is one of the world’s leading printed carton suppliers, producing packaging product for both the food and beverage sectors. It is one of the largest manufacturers of folding cartons, unbleached paperboard, coated recycled board, microwave packaging and machinery.