Graphic Packaging Holding Company, (Graphic Packaging), a vertically-integrated provider of sustainable fibre-based consumer packaging solutions, is to acquire AR Packaging Group AB (AR Packaging), Europe’s second largest producer of fibre-based consumer packaging, from CVC Capital Partners Fund VI for approximately USD1.45 billion 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 uniquely 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 USD1.1 billion in annual sales and USD160 million in annual Adjusted EBITDA. In addition, the combination is expected to drive total synergies of USD40 million over 36 months following close. The deal is expected to be immediately accretive to the Company’s earnings per share and cash flow.
Source: Private Equity Wire
