Trade Resources Industry Views Graphic Packaging Completes Carton Craft Acquisition

Graphic Packaging Completes Carton Craft Acquisition

Graphic Packaging International has completed the previously announced acquisition of Carton Craft and its affiliate Lithocraft.

 The deal, which was signed last month, was subject to standard closing requirements and regulatory review.

Carton Craft is an independent converter engaged in the production of paperboard based air filter frames and folding cartons. The company operates two converting plants in New Albany, Indiana.

The combined businesses generated revenues of about $70m and better converting EBITDA margins on an LTM basis.

The integration of further CUK paperboard tons and cost efficiencies will drive synergies from the purchase. The EV/EBITDA multiple for the deal is estimated to be below 6.0X on a post-synergy basis.

Graphic Packaging International is a  subsidiary of Graphic Packaging Holding Company, which provides paper-based packaging solutions for a several products to food, beverage and other consumer product companies. 

AT the time of agreement signing, Graphic Packaging Holding Company CEO Michael Doss stated that the deal will enable the firm to increase its mill to converting plant integration levels into growing markets, offer a path for margin improvement and close post-synergy EV/EBITDA multiples.

Graphic Packaging Holding Company has its headquarters in Atlanta and provides paper based packaging solutions for food, beverage and other consumer product companies.

Carton Craft, located in Saint Charles, Illinois, has over three decades of experience in delivering folding carton and sustainable packaging solutions that satisfy customer requirements.

The company designs, manufactures, warehouses and ships folding cartons, and assists customers with management and in time delivery solutions.

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