Our North America Consumer Packaging business has a talented team, very good assets and great customers, and I am confident of the results the combined business will achieve. ‘Investing in Graphic Packaging gives International Paper the opportunity to benefit from a much stronger value-creation consumer packaging platform, while allowing us to remain focused on growing value in our core businesses. Mark Sutton, International Paper chairman and CEO, said: ‘After evaluating a range of strategic options, we believe this transaction represents excellent value for our shareholders. We expect the transaction will significantly increase our mill production and converting scale, meaningfully increase our exposure to the growing foodservice market, provide significant runway to realize synergies, and drive strong financial results.’ĭoss described the 75 million USD in synergies as ‘compelling’, which will be driven by cost reductions, increased paperboard integration, and procurement and mill efficiencies. Graphic Packaging president and CEO Michael Doss commented: ‘We are excited about the platform for future growth created by this combination. Graphic Packaging said the partnership expands existing and builds new platforms for integrated growth in SBS foodservice markets and folding carton converting. The business includes two SBS mills located in Augusta, Georgia and Texarkana, Texas with annual production capacity of 1.2 million tons of SBS, three converting facilities in the US and one in the UK, with the capacity to convert 250,000 tons of SBS paperboard into over 24 billion units of paper-based cups and cylindrical containers. International Paper's North America Consumer Packaging business is a producer of solid bleached sulfate (SBS) paperboard and paper-based foodservice products globally. It also claims market-leading positions in coated unbleached kraft paperboard and coated-recycled paperboard. The company operates on a global basis, and is one of the largest producers of folding cartons in the US. Looking for business intelligence data on Graphic Packaging International, Texarkana Mill or other suppliers of Paperboard Set up your free account with IndustrySelect. Graphic Packaging is a provider of paper-based packaging for a variety of products to food, beverage and other consumer product companies. Our coated unbleached kraft (CUK), or Solid Unbleached Sulfate (SUS), includes coated paperboard grades that provide excellent tear strength in humid and dry conditions, and provides excellent printability. As a result, International Paper’s North America Consumer Packaging business is valued at 1.8 billion USD. The partnership assumes 660 million USD of International Paper debt. International Paper owns 20.5 percent of the partnership, equivalent to a 1.14 billion USD value. Graphic Packaging owns 79.5 percent and is the sole operator. and has leading positions in the recycled coated paperboard, unbleached coated paperboard and bleached sulfate pulp containerboard markets.Structured as a new partnership, the move combines Graphic Packaging’s existing businesses and International Paper’s North America Consumer Packaging business. Graphic Packaging, which operates worldwide, is one of the largest manufacturers of folding cartons and paperboard foodservice products in the U.S. Graphic Packaging's goal is to make 100% of its products fully recyclable by 2025.Ī few weeks ago, Graphic Packaging announced the acquisition of AR Packaging, the second largest producer of fiber-based consumer packaging for $1.45 billion. The highly integrated model we have developed allows us to serve a wide range of customers around the world with new and innovative packaging solutions, positioning us well to achieve the ambitious growth and profit goals set forth in Vision 2025. "The partnership with International Paper has played an important role in establishing our leadership position in the fiber-based consumer packaging industry on all three paperboard substrates. Michael Doss, CEO of the company, comments: Graphic Packaging now owns 100% of the partnership. Graphic Packaging owned 79.5% of the partnership and was the sole manager, while International Paper owned 20.5%. The two companies established a joint venture company in 2018 as part of the partnership. U.S.-based Graphic Packaging Holding, a leader in paper and paperboard packaging for food products, announced in May that it had completed its partnership with International Paper for the folding carton business.
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