US-based Graphic Packaging Holding Company is taking over Contego Cartons in a £81m deal to create "leading position in the European food and consumer products folding carton market."
US-packaging company Graphic Packaging Holding Company will acquire Contego Packaging's food and beverage Cartons business in Europe. A corresponding definitive agreement has already been signed and the acquisition is expected to close by the end of this year, the companies announced today.
According to Graphic Packaging, the value of the transaction amounts to £81m. Under the terms of transaction, Graphic Packaging will pay £71m in cash and assume approximately £10m in other net liabilities, the US-packaging company explained. Contego Packaging, which is owned by Platinum Equity did not reveal financial terms of the deal.
The acquisition "enhances Graphic Packaging's position in Europe by growing its operating footprint, expanding into new markets and providing new opportunities for growth," Graphic Packaging said in a press release on 16 November. Contego Cartons had trailing twelve month sales of approximately $260m (£164m) and EBITDA of nearly $19m (£12m).
"The ownership and growth strategy of the Healthcare business of the Contego Packaging Group remains unchanged and continues to remain focused on expansion through organic and acquisitive growth," said Contego Packaging.
Contego Cartons and Contego Healthcare had been taken over by the US private equity firm Platinum Equity in March 2011. Previously they had been part of the South African packaging company Nampak Limited, trading under the names of Nampak Cartons and Nampak Healthcare.
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