Graphic Packaging Holding Company (NYSE: GPK ), (“Graphic Packaging” or “the company”), a leading vertically integrated provider of sustainable packaging solutions for the fiber-based consumer packaging, and CVC Capital Partners Fund VI today announced a definitive agreement under which Graphic Packaging will acquire AR Packaging Group AB (“AR Packaging”), the second-largest European producer of fiber from consumer packaging based on approximately 1.45 billion dollars in cash, pending the usual adjustments.
The combination enhances Graphic Packaging’s global scale, innovation capabilities and value proposition for customers across Europe and neighboring regions. With a broad set of industry-leading packaging solutions, design expertise and expanded geographic reach, the combined company will be uniquely positioned to capture opportunities for continued organic growth in existing and new global markets and customers.
Está previsto que la adquisición propuesta de AR Packaging agregue 1.100 millones de dólares en ventas anuales y 160 millones de dólares en su cifra EBITDA ajustada anual. Además, se espera que la combinación genere sinergias totales por valor de 40 millones de dólares durante los 36 meses posteriores al cierre. Está previsto que el acuerdo incremente inmediatamente las ganancias por acción y el flujo de efectivo de la compañía.
Michael Doss, CEO and CEO of Graphic Packaging, stated: “AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe. The acquisition of AR Packaging will create significant value creation opportunities for our customers, our employees and our shareholders, while bringing together two leading providers of fiber-based consumer packaging solutions with a long history of innovation and creative packaging design. The large distributed footprint of AR Packaging’s 25 converting facilities in Eastern and Western Europe provides significant benefits of scale and profitability that reinforce our combined presence and ability to serve customers across Europe and globally.We are pleased to welcome the AR Packaging team as we jointly undertake work to advance our commitment to sustainable packaging solutions for global consumers in support of the shift to a more circular economy. “
Stephen scherger, Executive Vice President and CFO of Graphic Packaging, added: “The acquisition of AR Packaging expands our opportunities to serve and grow within markets around the world alongside our sustainable packaging solutions. The combination, in addition to our previous acquisition announced by Americraft Carton, provides support for our growth objectives and positions Graphic Packaging in a place that consistently delivers organic sales growth at the upper end of our 100-200 basis point goal, as outlined in Vision 2025. Specifically, the lean operating models executed by both organizations, in addition to our complementary market segments, provide benefits.The significant cash flow generating capacity of the combination will generate strong returns, with Graphic Packaging expected to return to our long-term target leverage range of 2.5-3.0x within 24 months of closing. “
AR Packaging CEO and CEO Harald SchulzHe explained: “I am proud of the progress we have made in creating a clear strategy and making AR Packaging a respected provider of packaging solutions. I want to thank CVC for their support provided in those efforts over the last five years. Graphic Packaging’s service and deep focus on providing innovative and sustainable solutions are closely aligned with the way we operate our own business, making them an ideal partner. The ability to leverage beneficial chain integration of value, ranging from carton manufacturing to carton converting, provides more prominent possibilities to deliver sustainably optimized solutions to our customers.Our team looks forward to joining the Graphic Packaging team to become the world’s leading provider of sustainable fiber-based packaging solutions. “
CVC Managing Director Lave Beck-Friis said: “We are very proud of the progress AR Packaging has made during our partnership. It has been a pleasure working with Harald and his excellent team to develop and launch many new products, as well as investing to support an active M&A agenda to accelerate the growth of the business into a truly global player. We are pleased to deliver AR Packaging in such a strong position and to have found a new owner who shares the management vision. to set the future direction of the business in motion. “
The transaction, which has been unanimously approved by the boards of Graphic Packaging and AR Packaging, is expected to close within 4-6 months, still subject to regulatory approvals and other customary closing conditions. .
BofA Securities acted as financial advisor and DLA Piper acted as legal advisor to Graphic Packaging. Credit Suisse International acted as financial advisor and Roschier acted as legal advisor to AR Packaging.
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Graphic Packaginghost a conference call for investors at 8:30 a.m. ET / 2:30 pm CET today (14 May 2021). The conference call will be webcast and can be accessed from the Investors section of the Graphic Packaging website at www.graphicpkg.com . Participants can also listen by phone by calling 833-900-1527 from within the United States and Canada, and 236-384-2052 from outside the United States and Canada. Telephone participants should provide the conference ID number 2253579. The event webcast will be available for replay on the Graphic Packaging website from approximately1:00 p.m. ET on Friday, May 14, 2021.