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Graphic Packaging buys assets of paperboard converter PFP

PKBR Staff Writer Published 13 June 2018

Graphic Packaging International, a subsidiary of Graphic Packaging Holding Company, has agreed to acquire all the assets of PFP and its related entity PFP Dallas Converting for an undisclosed sum.

PFP is an independent converter, which is engaged in the production of paperboard-based air filter frames.

The company operates two manufacturing facilities in Lebanon of Tennessee and Lancaster of Texas.

The business is said to convert around 18 thousand tons of paperboard, primarily CUK, and delivered strong EBITDA margins on an LTM basis.

According to Graphic Packaging, the synergies from the deal will be determined by the integration of additional CUK paperboard tons and cost efficiencies.

Graphic Packaging Holding Company president and CEO Michael Doss said: “The PFP acquisition extends our leading position in the growing paperboard-based air filter frame market, which we established with the acquisition of Carton Craft in July 2017.

"The transaction is consistent with our strategy to pursue acquisitions that allow us to increase our mill to converting plant integration levels into growing markets at compelling post-synergy  EV/EBITDA multiples."

In January this year, International Paper transferred its North America Consumer Packaging business to Graphic Packaging, creating a $6bn paper-based packaging firm.

Graphic Packaging holds 79.5% stake in the combined company, while IP owns the remaining 20.5% interest.

IP’s North America consumer packaging business manufactures solid bleached sulfate (SBS) paperboard and paper-based foodservice products.

The acquired business operates two SBS mills in Augusta of Georgia and Texarkana of Texas, in addition to three converting facilities in the US and one in the UK.

Based in Atlanta of Georgia, Graphic Packaging Holding produces paper-based packaging solutions, which can be used in various applications such as food, beverage, foodservice and other consumer products.

The firm is the major producer of folding cartons and paper-based foodservice products in the US, ands has significant market shares in solid bleached sulfate paperboard, coated unbleached kraft paperboard and coated recycled paperboard.