Georgia-based Company Acquires International Paper Packaging Division
Metro Atlanta-based Graphic Packaging Holding Co., a fiber-based packaging company, has acquired International Paper’s North American Consumer Packaging division, a transaction worth $1.8 billion.
The new Graphic Packaging subsidiary will hold both businesses–Graphic Packaging’s existing packaging businesses and International Paper’s consumer packaging businesses.
The transaction is likely to close in 2018, according to a statement from International Paper. The company will own 20.5 percent of the subsidy.
With the acquisition, Graphic Packaging adds International Paper’s coated paperboard and food service products to its existing line of unbleached kraft, coated recycled boxboard and folding carton products.
International Paper will use $660 million in cash proceeds from the transaction to pay off the debt.
The fate of International Paper plant in Augusta is still unclear following the company’s transaction with Graphic Packaging.
An International Paper spokesperson has said that the company will not make any statements regarding the transaction outside of what was revealed in its initial press release on Tuesday, which does not address plans for the Augusta plant.
Graphic Packaging’s release says the plant in Augsuta and one in Texarcana, Texas are both included in the deal that gives Graphic Packaging Holding CO. 79.5 percent ownership interest.
Both the Augusta and Texarcana plants produce solid bleached sulfate paperboard and paper-based food service and have an annual capacity of 1.2 million tons.