The Board of the Finnish Forest Industries Federation has elected Ilkka Hämälä, the future President...
Graphic Packaging to acquire Seydaco Packaging
Graphic Packaging Holding Company announced that its wholly-owned subsidiaries,Graphic Packaging International, Inc.and Graphic Packaging International Canada, ULC, have agreed to acquire the assets ofSeydaco Packaging Corp.and its affiliatesNational Carton and Coating Co., and Groupe Ecco Boites Pliantes Ltée. The acquisition is subject to standard closing requirements and is expected to close in the 4Q 2017.
The business generated revenues of approximately$40 millionand 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 CEOMichael Doss.
Seydaco is a folding carton producer with a leading position inCanadafocused on the foodservice, food, personal care, and household goods markets. Seydaco converts approximately 20,000 tons of paperboard annually and operates three converting plants.