Graphic Packaging Agrees to Acquire Seydaco Packaging Corp. and its Affiliates

Graphic Packaging Holding Company (NYSE: GPK), today announced that its wholly-owned subsidiaries, Graphic Packaging International, Inc. and Graphic Packaging International Canada, ULC, have agreed to acquire the assets of Seydaco Packaging Corp. and its affiliates National Carton and Coating Co., and Groupe Ecco Boites Pliantes Ltée.

Seydaco is a folding carton producer with a leading position in Canada focused on the foodservice, food, personal care, and household goods markets. Seydaco converts approximately 20,000 tons of paperboard annually and operates three converting plants located in Mississauga, Ontario, St.-Hyacinthe, Québec, and Xenia, Ohio.

The business generated revenues of approximately $40 million and low double digit EBITDA margins on an LTM basis. Synergies from the acquisition will be driven by the integration of additional paperboard tons and cost efficiencies. On a post-synergy basis, the EV/EBITDA multiple for this transaction is expected to be below 6.0X.

“The announced transaction is consistent with our strategy to pursue acquisitions that allow us to grow our folding carton volume in attractive geographies and end-markets, improve our cost position, increase our mill to converting plant integration levels over time, and that we can close at compelling post-synergy EV/EBITDA multiples,” said President and CEO Michael Doss.

David Seychell, President of Seydaco, said, “We are delighted to join Graphic Packaging. Our employees and customers will truly benefit from this transaction. Our history of providing customers with high-quality, value added packaging solutions and our speed to market philosophy combined with their strong, global position will bring much added value to the paperboard packaging marketplace.”

The acquisition is subject to standard closing requirements and is expected to close in the fourth quarter 2017.
http://investors.graphicpkg.com/investor-relations/press-releases/press-release-details/2017/Graphic-Packaging-Agrees-to-Acquire-Seydaco-Packaging-Corp-and-its-Affiliates/default.aspx

Related Posts

Pregis expands Inspyre™ product line with new mailer; increases support of environmental nonprofit organization

Pregis® announces the expansion of its Inspyre™ product line with the new Inspyre™ Mailer, amplifying its contributions to help fight water insecurities in communities around the world. Inspyre™ packaging is a brand member of 1% for the Planet, with one percent of the product line’s sales funding Uzima, a charity that makes and distributes water filters that provide clean drinking water to people in need. The Inspyre mailer offers an efficient, lightweight, and sustainable way to ship non-fragile items and soft goods such as apparel, linens, in direct-to-consumer e-commerce applications. Made with a minimum of 30 percent recycled content, the new Inspyre poly mailer offers customers a unique packaging solution that contributes to sustainability goals and positive change. The mailer, available in fanfold and roll stock, runs through Pregis Sharp automated bagging systems, which can increase throughput by four times that of manual packing applications, helping fulfillment centers maximize efficiency and minimize labor constraints.

Next Generation Koenig & Bauer Rapida 145 Eight-Color Press Plus Coater Creates Additional Opportunities at Calumet Carton (whattheythink.com)

When the highly-anticipated next generation Koenig & Bauer Rapida 145 eight-color press plus coater arrived on the pressroom floor at Calumet Carton, the leading producer of mailers and packaging products, the South Holland, IL manufacturer fulfilled one of its primary goals to continually reinvest in today’s most modern state-of-the-art equipment for its valued well-known customers. “We are proud to be operating this next generation offset press from Koenig & Bauer,” says Gina Inwood, vice president at Calumet Carton. “In today’s competitive marketplace, we need to provide the utmost speed, automation, and efficiency for our packaging customers, allowing them to offer color consistent eye-popping packaging within tight deadlines. This press, one of the first in North America, sets us apart from our competition, creating additional opportunities and offering lightning-fast production speeds.”

Georgia-Pacific is investing more than $20 million in its Lebanon, Tennessee plant

Georgia-Pacific is making a significant investment of more than $20 million at its plant in Lebanon, Tennessee. Its existing corrugator will be replaced with a new one to provide the plant with more throughput and provide customers with a better-quality product. “This is as much an investment in our current and future customers as it is in our Lebanon operations,” said Rob Streeter, Georgia-Pacific’s area general manager. “This new technologically advanced corrugator will give us the ability to supply the independent and integrated box and display customers throughout the mid-South, with upgraded offerings such as two-sided high-quality print, including Georgia-Pacific’s Hummingbird® digital print, on a variety of fluting options for the converted board.” The project will be conducted in phases through 2023 while the existing corrugator continues to operate. The planned startup of the new unit will be sometime in the first half of 2024.
Back To Top
×Close search
Search