Graphic Packaging Agrees to Acquire Carton Craft Corp.

Graphic Packaging Holding Co., Atlanta, Ga., USA, this week announced that its wholly owned subsidiary, Graphic Packaging International Inc., has agreed to acquire substantially all of the assets of Carton Craft Corp. and its affiliate Lithocraft Inc. 

Carton Craft is an independent converter focused on the production of paperboard based air filter frames and folding cartons, and operates two converting plants in New Albany, Ind.

The combined businesses generated revenues of approximately $70 million and strong converting EBITDA margins on an LTM basis. Synergies from the acquisition will be driven by the integration of additional CUK paperboard tons and cost efficiencies. On a post-synergy basis, the EV/EBITDA multiple for this transaction is expected to be below 6.0X.

"The announced transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets, provide a runway for further margin improvement, and that we can close at compelling post-synergy EV/EBITDA multiples," said President and CEO Michael Doss.

The acquisition is subject to standard closing requirements and regulatory review and is expected to close in the second quarter 2017.

Graphic Packaging Holding Co. is a provider of paper-based packaging solutions for a wide variety of products to food, beverage, and other consumer product companies. The company operates on a global basis, is one of the largest producers of folding cartons in the U.S., and holds leading market positions in coated unbleached kraft paperboard and coated-recycled paperboard.