Atlanta, Georgia based Graphic Packaging reported that it has signed a definitive agreement with CVC Capital Partners Fund to acquire AR Packaging for approximately $1.45 billion in cash.
AR Packaging is one of Europe’s second-largest producers of fiber-based consumer packaging. The group offers a unique range of packaging solutions from its specialized plants. Added value is created to its customers through its broad product offering and deep knowledge of carton-based and flexible packaging.
Graphic Packaging, which operates globally and is one of the largest producers of folding cartons and paper-based foodservice products in the United States, holds strong market positions in coated recycled paperboard, coated unbleached Kraft, and solid bleached sulfate paperboard.
Founded in 1981, CVC is a private equity and investment advisory firm with a network of 23 offices throughout Europe, Asia, and the United States, with approximately $118 billion of assets under management.
The combination enhances Graphic Packaging’s global scale, innovation capabilities, and value proposition for customers throughout Europe and bordering regions. With a broad set of industry-leading packaging solutions, design expertise, and expanded geographic reach, the combined company will be uniquely positioned to capture continued organic growth opportunities across existing and new global customers and markets.
“AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe,” said Michael Doss, Graphic Packaging’s President and CEO. “Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions with long histories of innovation and creative packaging design.
“I am proud of the progress we have made in establishing a clear strategy and building AR Packaging into a respected provider of packaging solutions,” said AR Packaging’s President and CEO, Harald Schulz. “Graphic Packaging’s shared approach to customer service and deep focus on providing innovative, sustainable solutions closely aligns with how we operate our own business, making them an ideal partner. The ability to leverage beneficial value chain integration, from paperboard manufacturing to carton converting, provides increased possibilities to offer sustainably optimized solutions to our customers.”