USA • Graphic Packaging has formed a new partnership with International Paper’s (IP) North America Consumer Packaging business to create a new USD 6 billion paper-based packaging company.
Under the terms of the agreement, Graphic Packaging will operate the partnership with a 79.5% interest, while the remaining 20.5% stake will be with IP valuing nearly USD 1.14 billion. The transaction will not affect Graphic Packaging’s current board of directors nor its leadership team.
International Paper’s North America Consumer Packaging business is valued nearly USD 1.8 billion and manufactures solid bleached sulphate (SBS) paperboard and paper-based foodservice products for the global market.
It owns two SBS mills located in Georgia and Texas, which have an annual combined production of 1.2 million tonnes of SBS. It also has three converting facilities in the US and one in the UK, which converts SBS paperboard into paper-based cups and cylindrical containers.