Graphic Packaging has announced an agreement to acquire the Food and Consumer Carton business of UK's packaging company Contego Cartons for £81m.
Graphic Packaging president and chief executive officer David Scheible said the combination offers solid synergies and the Contego acquisition is a vital step in strengthening its positioning in Europe.
"Combining Graphic's current European business focused in the beverage markets with Contego's strong market share position in the European food and consumer products markets will allow us to broaden our customer base and enhance our competitive positioning," Scheible said.
The acquisition, which is set to extend Graphic Packaging into new end markets, will expand the company's global footprint besides providing new growth opportunities.
Contego operates three folding carton facilities that annually convert about 150,000t of paperboard into folding cartons for the food and consumer product industries. Two of them are in the UK while the third facility is in the Netherlands.
Subject to standard closing requirements, the acquisition is expected to close in late December 2012.
