Graphic Packaging Holding Company announced that its wholly owned subsidiary, Graphic Packaging International, Inc., has agreed to acquire substantially all the assets of Carton Craft Corp. and its affiliate Lithocraft, Inc.
Carton Craft is an independent converter focused on the production of paperboard based air filter frames and folding cartons, and operates two converting plants in New Albany, Indiana. The combined businesses generated revenues of approximately $70 million and strong converting EBITDA margins on an LTM basis. Synergies from the acquisition will be driven by the integration of additional CUK paperboard tons and cost efficiencies.
“The announced transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets, provide a runway for further margin improvement, and that we can close at compelling post-synergy EV/EBITDA multiples,” said President and CEO Michael Doss.
The acquisition is subject to standard closing requirements and regulatory review and is expected to close in the second quarter 2017.
