A&R Carton’s Beer and Beverage packaging business acquisition strengthens the company.
Packaging Holding Company(www.graphicpkg.com), a leading provider of
packaging solutions to food, beverage and other consumer products companies, announces
an agreement for one of its subsidiaries to acquire A&R Carton's Beer and
Beverage packaging business in Europe.
acquisition of A&R Carton's Beer and Beverage packaging business enhances
our position in the European beverage packaging market and enables us to extend
our customer reach in the region," says David
Scheible, Graphic Packaging's President and Chief Executive Officer.
"A&R has a solid reputation as an innovative beverage packaging
supplier and the combination allows us to better serve our global beverage
customers with a broader base of new products and services. Similar to our
strategy in the U.S., we are committed to growing our European business around
food and beverage end markets and optimizing our supply chain footprint around
our customers' needs. The A&R acquisition, combined with last week's
announced acquisition of Contego Cartons, gives Graphic Packaging a significant
position in the European folding carton market and widens the Company's global
the terms of the transaction, Graphic Packaging will pay approximately €19
million in cash and assume approximately €7 million in other net
liabilities. The transaction will be funded with existing cash and
borrowings from the company's current revolving line of credit. The A&R
Beer and Beverage packaging business includes two manufacturing facilities that
convert approximately 30,000 tons of paperboard annually. The folding
carton facilities are located in the
Netherlands and Germany. The
acquisition is subject to standard closing requirements and is expected to
close in late December.