Graphic Packaging International To Acquire Americraft For $280M Atlanta, Georgia based Graphic Packaging International (GPI) last week announced that it has acquired Prairie Vil- lage, Kansas based Americraft Carton. As part of the deal, Graphic Packaging will acquire Americraft Carton’s seven converting facilities and a team of employees for $280M. Americraft Carton offers all styles of paperboard folding cartons, including seal end, tuck top, reverse tuck, straight tuck, four and six beer trays, sleeves, simplex trays and end caps. The company’s folding cartons can also be inte- grated with special features such as windows, UV printing and coatings, embossing and foil stamping. Americraft Carton also offers a range of other paper- board products such as display cards, clamshell insert cards, sleeves and bands, blister cards and security tags.
The proposed deal is expected to add around $200m in sales and $30 million in adjusted EBITDA, in addition to significant chances for paperboard integration. GPI has also stated that synergies may contribute an additional $10 million of adjusted EBITDA within four months of clos- ing. The comapny reported a net income of $54 million for the Q1 of 2021, compared to a net loss of $13 million for the same period last year. GPI has also announced that its net sales have increased by three percent to $1.64 billion in the Q1 of 2021, compared to $1.59 billion in Q1 2020. “Consumer preferences for sustainable packaging are driving global demand for fibre-based packaging solu- tions,” said GPI President and CEO Michael Doss. “We are meeting this demand by introducing new innovative products and supporting our customers as we answer the calls from today’s consumer. During the first quarter, we continued to deliver on our ambitious growth strategy, in- creasing net organic sales by two percent.”
Old Newsprint Mill In WA To Reopen As OCC Facility According to a report in the local media outlet, The Miner, pending approval from bankrupcty courts, the former Ponderay Newsprint Mill in Usk, Washington, will be reopened as a corrugated production facili- ty, according to court filings from Chapter 7 Trustee John D. Munding. Allrise Capital had the winning bid, in the amount of $18,100,000. “I am informed that Allrise will be restart- ing paper mill operations, with an aim to re- purpose selected portions of the paper mill into an Old, Corrugated Cardboard (OCC) paper production facility. In summary, an OCC facility would produce cardboard ma- terials used in packaging, manufacturing, e-commerce, shipping, and other indus- tries,” Munding wrote in the filing. “Allrise also has a strong interest in building and managing high-tech data centers for cloud computing operations. Allrise is committed to employing personnel to operate the pa- per mill facility as soon as possible.” Three entities submitted qualifying bids: PPL Acquisition Group, the Kalispel Tribe of Indians and Allrise. All three participated in the auction process and bidding proce- dure, which commenced via email on Mon- day, April 19, and continued through Friday, April 23. The live auction was held Friday via Zoom and in person. The bidding took an hour and a half and there were approxi- mately 60 rounds. Allrise made the last bid of the day at $18.1 million.
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www.boardconvertingnews.com
May 10, 2021
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