USA – Graphic Packaging Holding Company, a paper-based packaging company, has made its second acquisition of International Paper’s (IP) interest in Graphic Packaging International Partners, their partnership company.
The purchase will be funded with cash on hand and a draw on the domestic revolving credit facility.
The deal marks International Paper’s continued intentions to monetise its ownership interest in Graphic Packaging International Partners.
In 2017, International Paper’s North American consumer packaging business and Graphic Packaging formed a US$6 billion paper-based packaging merger.
The acquisition follows International Paper’s move earlier this year, as it began the process of reducing its ownership interest in the merger by selling an initial US$250 million stake to Graphic Packaging who had witnessed a “strong cash flow generation and healthy balance sheet”.
It was announced that International Paper had the contractual rights to continue to reduce its minority ownership interest in the partnership every 180 days.
Earlier this year, Graphic Packaging also agreed to acquire the consumer packaging group business of Greif for approximately US$85 million.
Graphic Packaging 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.
A global producer of fiber-based packaging, pulp, and paper, IP’s current business segments include industrial packaging, global cellulose fibers, and papers. With more than 50,000 employees throughout the world, in 2019, IP had net sales of US$22 billion.
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