What’s Going on with GPK?
Graphic Packaging Holding Company (GPK), located in the U.S. state of Georgia, announced that it, along with CVC Capital Partners Fund VI (global), have entered into a definitive agreement to purchase Sweden’s AR Packaging for $1.45 billion in cash. With offices and plants in Asia and Africa — along with 25 converting facilities in Eastern and Western Europe — AR Packaging Group is Europe's second-largest manufacturer of fiber-based consumer packaging. Just after market open today, Graphic Packaging stock was up 0.67% at $19.53 a share.
What Does This Mean for Graphic Packaging Holding Company?
The acquisition of AR Packaging will further GPK’s goal of becoming the leading international provider of sustainable fiber-based consumer packaging solutions, according to today’s official Graphic Packaging news release, “The combination [with AR Packaging) enhances Graphic Packaging's global scale, innovation capabilities, and value proposition for customers throughout Europe and bordering regions.” GPK will now be uniquely positioned to take advantage of ongoing “organic growth opportunities across existing and new global customers and markets.”
The acquisition of AR Packaging should add $1.1 billion in annual sales on top of the company’s $160 million in annual sales. "AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe. Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions with long histories of innovation and creative packaging design,” Graphic Packaging President and CEO Michael Doss commented.
GPK has an Overall Score of 75. Find out what this means to you and get the rest of the rankings on GPK!
Graphic Packaging Holding Co is a holding company that manufactures and sells a variety of paper-based consumer packaging products through its subsidiaries. The company's two primary functions include the sale of paperboard packaging and the operation of paperboard mills. The paperboard packaging business includes packaging for beverages, including beer and soft drinks as well as food, including cereal, frozen foods, and pet foods. The firm also sells paperboard packaging for household products, including dishwasher and laundry detergent and personal care products. Graphic Packaging operates papermills that sell laminated and coated packaging products to third parties. The majority of revenue comes from the Americas.
