Smirfit Kappa Statement re Birmingham Paper Mill

Total Packaging Papers & Specialty Packaging shipments in June increased four percent compared to June 2019. They were up two percent when compared to the same six months of 2019. The operating rate was 86.8 percent, essentially flat (-0.1 pts.) from June 2019 and down 1.2 points year-to-date. Mill inventories at the end of June decreased 5,000 short tons from the previous month and were up 17,000 short tons compared to June 2019.

Nosco, Inc., a subsidiary of Holden Industries, Inc., announced that it has acquired Gooding Company, Inc., a New York-based insert and outsert manufacturer with over 141 years of printing experience. Through the acquisition of Gooding, Nosco will add an additional manufacturing facility on the east coast that will help reduce lead times, lower packaging costs and provide an expanded portfolio of folded literature. Gooding was established in 1876 in Lockport, New York. In 1990, the company was sold to current president, Jerry Hace. Under Hace's leadership, the company began focusing on enclosures for the medical and pharmaceutical industries, in addition to other markets. "Over the years, Jerry Hace built a great team at Gooding that behaves very consistently with the employee-owned culture at Nosco," said Russ Haraf, Nosco President. "Gooding is a great company that will complement our On_Demand Solutions Center in Philadelphia very well – offering a full line of healthcare printed packaging solutions with best-in-class cycle times for the eastern portion of the U.S." Click Read More below for additional information.

Highlights: Graphic Packaging will create a leading integrated paper-based packaging company with approximately $6 billion of revenue and $1 billion of EBITDA post-synergies. Expands existing and builds new platforms for integrated growth in SBS foodservice markets and folding carton converting. International Paper Company's North America Consumer Packaging business valued at $1.8 billion. Targeting $75 million in synergies by the end of year three. Valuation of 8.6x Adjusted EBITDA and 6.3x Adjusted EBITDA post-synergies based on $210 million of Adjusted 2017 Estimated EBITDA. Transaction structured as a new partnership comprised of Graphic Packaging's existing businesses and International Paper Company's North America Consumer Packaging business. Graphic Packaging Holding Company will own 79.5 percent of the partnership and will be the sole operator. International Paper will own 20.5 percent of the partnership. Click Read More below for additional information.