FMN | October 30th, 2017

An N.V. Publication FLEX

October 30, 2017

Vol. 19 No. 22

Market News


Serving The Flexographic Printing Industry In Print and Online at

Graphic Packaging, IP Combine

Nilpeter’s Teachout Honored By TLMI Paul Teachout, Vice President of Sales & Marketing, Nilpeter USA Inc., was named TLMI’s 2017 Supplier of the Year at the TLMI Annual Meeting

I nternational Paper Co. has agreed to combine its North America consumer packaging business with Graphic Packag- ing Holding Co. in a deal that values the International Paper di- vision at $1.8 billion. Graphic Packaging will own 79.5 percent of the partner- ship and will be sole operator, and International Paper will own the remainder. The partnership is valued at $6 billion and will assume $660 million of International Paper debt, the companies said. International Paper’s North America consumer packaging

business produces solid bleached sulfate paperboard and paper-based foodservice products. It is projected to generate adjusted earnings before interest, taxes, depre- ciation and amortization of $210 million in 2017. The deal is projected to be accretive to earnings in its first year and generate $75

Michael Doss Mark Sutton

held October 8–11, at the Hyatt Re- gency Scottsdale Gainey Ranch Re- sort & Spa in Scottsdale,Arizona. Lisa Milburn, Managing Director

million in synergies by the end of its third year, the companies said. Graphic Packaging said it will not change its board of di- rectors as a result of the partnership. Bank of America Corp. and Alston & Bird LLP advised Graphic Packaging. IP CEO Mark Sutton told analysts the $1.8 billion deal came from “a range of strategic options. We wanted to invest in a strong Graphic Packaging.” For the third quarter, International Paper’s consumer packag- ing division showed an operating profit of $54 million after tak- ing a $14 million loss with special items in the second quarter.

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