Graphic Packaging takes full ownership of US$6Bn partnership with International Paper

US – Graphic Packaging, a leading provider of sustainable fiber-based packaging solutions for a wide variety of products to food, has acquired the remaining shares of the partnership that it hard formed with International paper in 2018.

During the formative years, Graphic Packaging owned a 79.5% of the partnership and become the sole manager, while International Paper held a 20.5% stake.

Over the last year, International Paper has reduced its interest in the partnership company, with Graphic Packaging upping its ownership stake to 82.5% following two transactions, each at US$250 million.

Following the acquisition of the remaining shares from International paper, Graphic Packaging now owns 100% of the merger, effectively concluding the partnership that had lasted more than two years.

As part of the final transaction, Graphic Packaging exchanged shares of common stock for International Paper’s remaining minority partnership interest of over 22 million membership units.

“The partnership with International Paper played an important role as we established our leadership position in fibre-based consumer packaging across all three paperboard substrates,” said Michael Doss, Graphic Packaging president and CEO.

Graphic Packaging’s move comes at a time when the global Fiber based Packaging Market is showing a stable outlook and is projected to Reach US$360. 9 Billion by 2027 up from the US$305 billion achieved in 2020.

China is projected to remain among the fastest growing regions and is anticipated to exhibit a CAGR of 4.6% over the analysis period 2020 to 2027 to reach a projected market size of US$71.8 Billion by the year 2027.

Gaining full ownership of its partnership with International Paper puts Graphic packaging at a vantage position to take advantage of this market expansion.

“The highly integrated model we have built enables us to serve a broad set of global customers with new and innovative packaging solutions, positioning us to achieve the ambitious growth and return goals established in Vision 2025,” Dos added.

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Earlier in May, Graphic packaging announced that it has agreed to acquire AR Packaging, a producer of fiber-based consumer packaging in Europe, from CVC Funds for approximately US$1.45 billion.

The company said the acquisition will expand its geographic reach, innovation capabilities, and value for customers throughout Europe and bordering regions.

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