Packaging companies Graphic
and Altivity seal the deal
Graphic Packaging and Altivity Packaging have completed the combination
deal creating a new leader in the global packaging market.
Graphic Packaging Holding Company announced that it has completed its
previously announced combination of Graphic Packaging Corporation and
Altivity Packaging, LLC. Graphic Packaging Holding Company had 2007 pro-forma
revenues of approximately $4.4 billion and will be a leading provider
of paperboard packaging solutions to the food, beverage and consumer products
industries. Commencing tomorrow, the common stock of Graphic Packaging
Holding Corporation will trade on the New York Stock Exchange under the
ticker symbol "GPK". The new company's headquarters are located
in Marietta, Georgia but a significant presence will be retained in Chicago,
where Altivity maintained its headquarters.
Graphic Packaging Holding Company, is a leading provider of paperboard
packaging solutions for a wide variety of products to food, beverage and
other consumer products companies. The company is one of the largest producers
of folding cartons and holds a leading market position in coated-recycled
boxboard and specialty bag packaging.
The transaction brings together two of the most progressive paperboard
packaging companies to create a new leader in the global packaging market.
The new company has a significantly expanded product portfolio, market
reach, and technology capabilities to provide innovative packaging solutions
in the folding carton, flexible packaging, label, multi-wall and specialty
bag markets, as well as high quality paperboard, inks and packaging machinery
to the food, beverage and consumer product sectors worldwide. "I
am very excited to have closed the transaction that we announced in July
2007, and to begin the implementation of the integration plan which will
enable us to achieve the $90 million in annual gross synergies we identified
at the beginning of this process. The integration teams are already in
place and at work," said David W. Scheible, President and Chief Executive
Officer of Graphic Packaging Holding Company. "Although we will be
required to divest two coated-recycled board (CRB) mills, we expect that
these divestitures will have an immaterial impact on EBITDA and no impact
on our ability to achieve the $90 million in synergies by 2012 with two-thirds
of this being realized by 2010."
The combination of Graphic Packaging and Altivity creates a company with
pro-forma 2007 revenues of over $4.4 billion and pro-forma 2007 Adjusted
EBITDA of approximately $553 million. Such pro-forma 2007 Adjusted EBITDA
reflects an adjustment for one-time, non-recurring Altivity charges of
approximately $30 million. Graphic Packaging achieved approximately $46
million of cost savings in 2007 with top line growth of approximately
4.3%. Altivity achieved over $50 million of standalone cost reductions,
while growing its top line by almost 3%. The new company will be led by
a combined management team with a strong track record of successfully
integrating businesses and achieving performance targets. "I am very
encouraged by the 2007 results of both companies as it gives us a solid
base from which to build. We are confident that we can achieve not only
the synergies arising from the combination, but also on-going operational
cost reductions," said
Scheible. "This transaction creates an attractive combination of
our packaging strengths and high quality assets. It increases customer
diversification, strengthens our market position, and achieves better
operational and financial results through economies of scale and operating
efficiencies," said Scheible.
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Service
Thor pot packaging container from RPC contributes to premium image of
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