Graphic Packaging Holding Co and CVC Capital Partners Fund VI have made a definitive agreement under which Graphic Packaging will acquire AR Packaging Group AB for approximately $1.45bn in cash, subject to customary adjustments.
The combination enhances Graphic Packaging’s global scale, innovation capabilities and value proposition for customers throughout Europe and bordering regions. With a broad set of industry-leading packaging solutions, design expertise, and expanded geographic reach, the combined company will be well positioned to capture continued organic growth opportunities across existing and new global customers and markets.
The proposed acquisition of AR Packaging is expected to add $1.1bn in annual sales and $160m in annual Adjusted EBITDA. In addition, the combination is expected to drive total synergies of $40m over 36 months following close. The deal is expected to be immediately accretive to the Company’s earnings per share and cash flow.
Michael Doss, Graphic Packaging’s President and CEO (pictured left), said, “AR Packaging is a leader in the growing market for sustainable folding carton packaging in Europe. Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees and our stockholders as we bring together two leading providers of fibre-based consumer packaging solutions with long histories of innovation and creative packaging design. AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits strengthening our combined presence and ability to service customers throughout Europe and globally.”
Stephen Scherger, Graphic Packaging’s EVP and CFO added, “The acquisition of AR Packaging expands our opportunities to serve and grow in markets around the world. The combination, together with our previously announced acquisition of Americraft Carton, supports our growth goals and positions Graphic Packaging to consistently deliver organic sales growth as outlined in Vision 2025.”
AR Packaging’s President and CEO, Harald Schulz, (pictured above) said, “I am proud of the progress we have made in establishing a clear strategy and building AR Packaging into a respected provider of packaging solutions. Graphic Packaging’s shared approach to customer service and deep focus on providing innovative, sustainable solutions closely aligns with how we operate our own business, making them an ideal partner.”