US giants Graphic Packaging and Altivity Packaging are to merge by the end of the year.
The deal was cut by TPG Capital, which owns the majority of Altivity Packaging, and GPK’s major shareholders, who on a combined basis control more than 60% of the Georgia-based corporation.
It will create a combined $4.4bn business renamed the Graphic Packaging Holding Company and an estimated $90m in cost savings. A joint statement says the merger will also create significant stockholder value.
The new company, which will have its headquarters in Georgia, will be owned 60% by GPK shareholders and 40% by Altivity. A spokesperson says a significent presence will remain in Chicago, home city of Altivity.
The business will have worldwide 47 folding carton factories, 12 multi-wall & specialty bag facilities, ten paperboard mills, six flexible packaging plants, five ink manufacturing facilities, three label printers and three packaging machinery manufacturing sites.
Graphic Packaging Corporation
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