Graphic Packaging Holding Company recently announced an agreement for one of its subsidiaries to acquire A&R Carton's Beer and Beverage packaging business in Europe.
"The acquisition of A&R Carton's Beer and Beverage packaging business enhances our position in the European beverage packaging market and enables us to extend our customer reach in the region," said David Scheible, Graphic Packaging's President and Chief Executive Officer.
"A&R has a solid reputation as an innovative beverage packaging supplier and the combination allows us to better serve our global beverage customers with a broader base of new products and services. Similar to our strategy in the U.S., we are committed to growing our European business around food and beverage end markets and optimizing our supply chain footprint around our customers' needs.
"The A&R acquisition, combined with last week's announced acquisition of Contego Cartons, gives Graphic Packaging a significant position in the European folding carton market and widens the Company's global footprint," he said.
Under the terms of the deal, Graphic Packaging will pay approximately EUR 19 million in cash and assume approximately EUR 7 million in other net liabilities.
The transaction will be funded with existing cash and borrowings from the Company's current revolving line of credit.
The A&R Beer and Beverage packaging business includes two manufacturing facilities that convert approximately 30,000 tons of paperboard annually. The folding carton facilities are located in the Netherlands and Germany.
The acquisition is subject to standard closing requirements and is expected to close in late December.
