Graphic Packaging Holding Company is to create a $6 billion paper based packaging company by forming a new partnership comprised of Graphic Packaging's existing businesses and International Paper's North America Consumer Packaging business.
Graphic Packaging Holding Company will own 79.5% of the partnership and will be the sole operator. International Paper will own 20.5% of the partnership, equivalent to a $1.14 billion value. The partnership will assume $660 million of International Paper debt. There will be no change to Graphic Packaging's current board of directors or leadership team.
International Paper's North America Consumer Packaging business is a $1.6 billion revenue leading producer of solid bleached sulfate (SBS) paperboard and paper based foodservice products globally. The business includes two SBS mills located in Augusta, Georgia and Texarkana, Texas with annual production capacity of 1.2 million tons of SBS, three converting facilities in the US and one in the UK, with the capacity to convert 250,000 tonnes of SBS paperboard into over 24 billion units of paper based cups and cylindrical containers.
The transaction has been approved by the board of directors of both companies and is expected to close in early 2018.