Graphic Packaging Combines Unit To Form New Company
Graphic Packaging Holding in Marietta, Georgia declared that the company
has merged its multiwall bag and specialty plastics packaging unit with
the kraft paper and multi-wall bag businesses of Delta Natural Kraft
(DNK) as well as Mid-America Packaging (MAP) however, both wholly owned
subsidiaries of Capital Five Investments (CVI).
Graphic said the DNK and MAP had yearly revenues of $150m and the grouping does not impact Graphic Packaging's net leverage ratio.
The packaging major will own 87% of the new unit while the remnants will be owned by Twinsburg, Ohio-based investor CVI, which by now owns Delta Natural Kraft of Pine Bluff, Arkansas, and Mid-America Packaging of Twinsburg.
The company claims the new firm will be North America's only upright integrated multi-wall bag business and the combination is predictable to yield $20-25m in synergy opportunities which may add to Graphic earnings by 2013.
Graphic Packaging president and CEO David Scheible said the joint entity further braces the company's position as a provider of these products, while perpendicularly integrating its converting assets with the kraft paper production capacity of Delta Natural Kraft.
Neither party established cash consideration as part of the transaction, although a debt of $25m held by DNK and MAP was settled using funds from Graphic Packaging.
Graphic Packaging posted sales of just about $3.2bn in the first nine months of 2011, up 2% compared to the equivalent period in 2010.
Plastic World News Desk - India
Graphic said the DNK and MAP had yearly revenues of $150m and the grouping does not impact Graphic Packaging's net leverage ratio.
The packaging major will own 87% of the new unit while the remnants will be owned by Twinsburg, Ohio-based investor CVI, which by now owns Delta Natural Kraft of Pine Bluff, Arkansas, and Mid-America Packaging of Twinsburg.
The company claims the new firm will be North America's only upright integrated multi-wall bag business and the combination is predictable to yield $20-25m in synergy opportunities which may add to Graphic earnings by 2013.
Graphic Packaging president and CEO David Scheible said the joint entity further braces the company's position as a provider of these products, while perpendicularly integrating its converting assets with the kraft paper production capacity of Delta Natural Kraft.
Neither party established cash consideration as part of the transaction, although a debt of $25m held by DNK and MAP was settled using funds from Graphic Packaging.
Graphic Packaging posted sales of just about $3.2bn in the first nine months of 2011, up 2% compared to the equivalent period in 2010.
Plastic World News Desk - India
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