International Paper has completed the transfer of its North America Consumer Packaging business to Graphic Packaging.
Graphic Packaging holds 79.5% stake in the combined company, while IP owns the remaining 20.5% interest.
In October 2017, Graphic Packaging agreed to combine with IP’s North American consumer packaging business.
As per terms of the deal, Graphic Packaging has accepted $660m of IP’s debt, as well as amended and restated its senior secured credit agreement.
IP’s North America consumer packaging business manufactures solid bleached sulfate (SBS) paperboard and paper-based foodservice products.
The acquired business operates two SBS mills in Augusta of Georgia and Texarkana of Texas, in addition to three converting facilities in the US and one in the UK.
The products can be used in various applications, including hot and cold cups, cartons, paper plates, food containers and liquid packaging.
Graphic Packaging president and CEO Michael Doss said: “We are very enthusiastic about the platform for future growth created by this combination and expect the transaction will significantly increase our mill production and converting scale.
“The combination meaningfully increases our exposure to the growing foodservice market, provides significant runway to realize synergies, and will drive strong financial results."
Based in Atlanta of Georgia, Graphic Packaging supplies paper-based packaging solutions for food, beverage, foodservice and other consumer product companies.
In November 2017, Graphic Packaging agreed to acquire Canada-based Seydaco Packaging and its affiliates for an undisclosed sum.
Seydaco manufactures folding carton products for the foodservice, food, personal care, and household goods markets.
Image: International Paper's global headquarters. Photo: courtesy of International Paper Company.