Graphic Packaging to sell multi-wall bag business

Graphic Packaging has entered into a definitive agreement to sell its multi-wall bag business to Mondi Group as part of a move to transform itself into a paperboard packaging company.

David Scheible, Graphic Packaging chairman, president and chief executive officer

The non-core assets to be divested include nine multi-wall bag converting plants located throughout the US and the Pine Buff, Arkansas kraft paper mill.  

The multi-wall bag plants and the kraft mill had trailing 12 month revenue of approximately 437 million USD and under the terms of the agreement, the enterprise value is 105 million USD. The sale will be an all cash transaction, and is subject to standard closing requirements but is expected to close late in the second quarter or early in the third quarter of 2014.

Graphic Packaging has made a number of acquisitions in the paperboard packaging market, including in Europe and with the takeover of Benson Group.

David Scheible, Graphic Packaging chairman, president and chief executive officer, said: ‘The anticipated sale of these non-core assets substantially completes our transformation into a pure play, vertically integrated paperboard packaging company.

‘The divestiture will free up valuable resources which we can redirect to further accelerate global growth in our core paperboard packaging business.’

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