One of the world's leading producers of paper and paperboard packaging, U.S.-based Graphic Packaging, announced today that it has completed its acquisition of European-based AR Packaging. Announced in May, the $1.45 billion (?1.25 billion) deal creates the world's leading provider of fiber-based consumer packaging solutions.
AR Packaging, based in Sweden, is one of Europe's leading packaging companies with sales of approximately ?900 million, 5,000 employees and 30 plants in 13 countries, including a production site in Cholet, Maine-et-Loire, France, which employs 190 people. AR Packaging generates 138 million euros of adjusted earnings before interest, taxes, depreciation and amortization per year.
Listed on the New York Stock Exchange, Graphic Packaging, which had $6.5 billion in sales in 2020, expects to generate savings through synergies between the two entities of $40 million (?34 million) over 36 months.
"The acquisition of AR Packaging expands our opportunities to serve and grow in markets around the world with our sustainable packaging solutions." Stephen Scherger, Graphic Packaging's executive vice president and CFO, said in May.
This operation, along with that of Americraft Carton last July, will enable Graphic Packaging to reach the top end of its annual organic growth rate set at 1% to 2% per year in the Vision 2025 plan presented in 2019.
