Combination of Benson Group and Graphic Packaging's European business is said to create a stronger player in the folding carton market in Europe, with annual sales exceeding $700m.
Atlanta based US packaging solutions company Graphic Packaging Holding will acquire the Benson Group in a $165m deal. According to Graphic Packaging, the company's European subsidiary has already agreed to take over the UK food, beverage and healthcare packaging company Benson Group. The transaction is subject to standard closing requirements and is scheduled for closure in the second quarter.
The Benson Group operates four folding carton facilities in the UK. The company converts 80,000 t of cartonboard annually and has seen its yearly sales rise to 120m, approximately $200m, in the current financial year.
The acquisition of Benson Group would broaden Graphic Packaging's food and consumer products offering and extend the company's reach into the store brand market, explained the US packaging company in today's press release. The combination of businesses was also expected to provide an opportunity to further integrate the company's SUS coated unbleached kraft board operations.