The deal, announced this morning, will give Graphic Packaging a stronger foothold in the European market and will add to its beverage cartons operations.
For Contego, the sale of the business – which has sites in Leeds and Gillingham in the UK, Hoogerheide in the Netherlands and Portlaiose in Ireland – will free up resources to focus on its core pharmaceutical and healthcare business.
Graphic Packaging has paid £71m for the business and assumed £10m of liabilities, making an overall deal value of £81m.
Contego has invested heavily in its pharmaceutical business since it was bought by private equity business Platinum Equity in late 2010, including building new facilities in Portsmouth in the south of England and a leaflet facility in Germany.
Tom Reid, chief executive of Contego (pictured), said: "The sale of the Cartons business will allow us to focus even more intensively on growth in the pharmaceutical and healthcare sectors."
In a statement this morning, Graphic Packaging president and chief executive David Scheible said that the acquisition "extends Graphic Packaging into new end markets, expands the company's global footprint and provides new opportunities for growth".
"Similar to our strategy in the US, we are committed to growing our European business around food and beverage markets and optimising our supply chain footprint around our customers' needs."
Nicholas Mockett of Moorgate Capital, who advised on the deal, said: "The fit is very clear. Graphic Packaging is a strong player in the cartons industry in North America and this acquisition of Contego Cartons, a European sector leader, will bolster their position in core, high quality, products in Europe."
