Graphic Packaging International has agreed to acquire Carton Craft and its affiliate Lithocraft for an undisclosed sum.
Under the deal, Graphic Packaging will purchase all the assets of both firms, helping to expand the operations of Graphic Packaging.
Carton Craft is an independent converter, which produces paperboard based air filter frames and folding cartons. The company runs two converting facilities in New Albany, Indiana.
Lithocraft is a full service printing company, which manufactures folding cartons, clamshell inserts, blister cards, POP displays and materials, air filter frames, direct mail packaging & fulfillment, printed sleeves and others.
The combined businesses report revenue of around $70m per annum.
According to Graphic Packaging, synergies from the acquisition will be driven by the integration of additional CUK paperboard tons and cost efficiencies.
Subject to standard closing requirements and regulatory review, the deal is expected to complete the second quarter of this year.
Graphic Packaging International is a subsidiary of Graphic Packaging Holding, which provides paper-based packaging solutions for a range of products produced by the food, beverage and other consumer product companies.
The firm also provides coated unbleached kraft paperboard and coated-recycled paperboard for its customers.
Graphic Packaging Holding Company president and CEO
Michael Doss said: "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>”
In May 2016, Graphic Packaging acquired Australian folding carton supplier Colorpak.
Colorpak holds capacity to convert close to 38,000 tons of paperboard into folding cartons every year though three facilities in Melbourne and Sydney in Australia; and Auckland, New Zealand.
