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Graphic Packaging to Acquire Assets/Affiliates of Seydaco Packaging.

M2 EQUITYBITES-November 13, 2017-Graphic Packaging to Acquire Assets/Affiliates of Seydaco Packaging

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13 November 2017 - Georgia, US-based commercial product packing company Graphic Packaging International, Inc. and Canada-based Graphic Packaging International Canada, ULC have agreed to acquire assets and affiliates of Canada-based folding carton producer Seydaco Packaging Corp., the company said.

Terms of the transaction were not disclosed. The acquisition is subject to standard closing requirements and is expected to close in 4Q17.

Graphic Packaging International, Inc. and Canada-based Graphic Packaging International Canada, ULC are subsidiaries of Georgia-based Graphic Packaging Holding Company (NYSE: GPK).

Seydaco Packaging Corp. and affiliates are National Carton and Coating Co., and Groupe Ecco Boites Pliantes LtAaAaAeA@

Seydaco is a folding carton producer with a leading position in Canada focussed on the foodservice, food, personal care, and household goods markets. Seydaco converts approximately 20,000 tons of paperboard annually and operates three converting plants located in Canada and US.

The business generated revenues of approximately USD 40m and low double-digit EBITDA margins on an LTM basis.

Synergies from the acquisition will be driven by the integration of additional paperboard tons and cost efficiencies. On a post-synergy basis, the EV/EBITDA multiple for this transaction is expected to be below 6.0X.

Graphic Packaging Holding Company provides paper-based packaging solutions, including food, beverage and other consumer product companies.

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Publication:M2 EquityBites (EQB)
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Date:Nov 13, 2017
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