“The $75 million in synergies is compelling and will be driven by cost reductions, increased paperboard integration, and procurement and mill efficiencies.” The combination meaningfully increases our exposure to the growing foodservice market, provides significant runway to realize synergies, and will drive strong financial results.”

The Company is a leading provider of paper-based packaging solutions for a wide variety of. “We are very enthusiastic about the platform for future growth created by this combination and expect the transaction will significantly increase our mill production and converting scale. In 2019 Graphic Packing International joined the Fortune 500.

“We are excited to close this transformative transaction at the start of the new year, and the timing reflects the significant effort of both Graphic Packaging and International Paper employees,” said President and CEO Michael Doss. Graphic Packaging is one of the largest producers of folding cartons and paper-based foodservice products in the United States, has strategic folding carton and foodservice converting positions globally, and holds leading market positions in solid bleached sulfate paperboard, coated unbleached kraft paperboard and coated-recycled paperboard. On a combined basis, Graphic Packaging is now a leading integrated paper-based packaging company with approximately $6 billion of projected revenue and approximately $1 billion of projected EBITDA post-synergies. International Paper has a 2-year lock-up on the monetization of their ownership interest and cannot purchase GPK shares for a period of 5 years, subject to limited exceptions. There is no change to Graphic Packaging’s current Board of Directors or leadership team. Graphic Packaging has assumed $660 million of International Paper debt and concurrently has amended and restated its senior secured credit agreement. International Paper will own 20.5 percent of the combined company. Graphic Packaging owns 79.5 percent of the combined company and will be the sole manager. 2, 2018) Graphic Packaging Holding Company has completed the combination of Graphic Packaging’s existing businesses with International Paper’s North America Consumer Packaging business. The company is one of the largest producers of folding cartons and holds a leading market position in coated-unbleached kraft and coated-recycled board.(USA, Jan. Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, is a leading provider of packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The transaction significantly increased our addressable market and vertical integration opportunities, while accelerating our presence in fiber-based packaging solutions,' Doss concluded. We appreciate the confidence International Paper placed in us to build and grow the business. 'The 2018 transaction with International Paper has successfully created value for our customers and stakeholders while building a leading integrated paperboard packaging platform. 'Our strong cash flow generation and healthy balance sheet provide us the flexibility to purchase the initial $250 million of minority interest from International Paper,' said Michael Doss, President and CEO of Graphic Packaging Holding Company.

At the end of 2019, Graphic Packaging had availability under the domestic revolving facility in excess of $1.4 billion.Īccording to Graphic Packaging, International Paper has the contractual right to continue to reduce its minority ownership interest in the Partnership every 180 days with the next potential transaction date in July 2020, subject to modification by the parties. The purchase will be funded with a draw on Graphic Packaging's domestic revolving credit facility. As a result, International Paper's ownership interest in the Partnership will decrease from approximately 21.6% to 18.3%. Per the agreement between the parties, Graphic Packaging will purchase approximately 15.1 million partnership units from International Paper for $250.0 million. 28, 2020 - Graphic Packaging Holding Company today announced that International Paper has notified the Company of its intent to begin the process of reducing its ownership interest in Graphic Packaging International Partners, LLC (the 'Partnership'). International Paper's ownership interest in Graphic Packaging International Partners, LLC will decrease from approximately 21.6% to 18.3%.

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