Graphic Packaging Holding Company Agrees to Acquire Folding Carton Converting and Paperboard Mill Assets of Cascades' Norampac Division

ATLANTA, Dec. 11, 2014 /PRNewswire/ --

Highlights

• Enhances Graphic Packaging's integrated folding carton offering in North America
• Broadens Graphic Packaging's Food, Food Service, Beverage and Consumer packaging solutions in North America
• Acquisition includes three Canadian folding carton converting facilities, an SBS substitute mill and a CRB mill
• Purchase price of approximately $39 million based on trailing twelve month sales of approximately $215 million and adjusted EBITDA of approximately $5 million

Graphic Packaging Holding Company GPK, a leading global provider of packaging solutions to food, beverage and other consumer products companies, today announced that its wholly owned subsidiary, Graphic Packaging International, Inc., has agreed to acquire several folding carton converting and paperboard mill assets from Cascades' Norampac Division in Canada.

"The acquisition of Cascades' Norampac paperboard assets enhances our position in North American folding cartons and enables us to extend our customer reach in Canada," said David Scheible, Graphic Packaging's Chairman, President and Chief Executive Officer. "The transaction is a continuation of our acquisition strategy to grow integrated folding carton converting volumes in key geographies and end-markets.  These assets will broaden our customer base and allow us to offer our current customers a wider range of products."

Under the terms of the transaction, the purchase price will be approximately $39 million based on trailing twelve month sales of approximately $215 million and adjusted EBITDA of approximately $5 million. Significant synergies are expected over the next 24 months. The transaction will be funded with existing cash and borrowings from Graphic Packaging's revolving line of credit.  Norampac operates three folding carton converting facilities located in Cobourg, Ontario, Mississauga, Ontario and Winnipeg, Manitoba, along with a Solid Bleached Sulfate (SBS) substitute mill located in Jonquiere, Quebec and a Coated Recycled Board (CRB) mill located in East Angus, Quebec.  The acquisition is subject to standard closing requirements and regulatory review and is expected to close in the first quarter of 2015.

Forward Looking Statements

Any statements of the Company's expectations in this press release constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements, including but not limited to those regarding the effect of the acquisition on the Company's competitive position, expected synergies and earnings and the timing of the closing, are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations.  These risks and uncertainties include, but are not limited to, the Company's ability to successfully integrate the acquisition and achieve synergies, the timing of regulatory approvals, inflation of and volatility in raw material and energy costs, cutbacks in consumer spending that could affect demand for the Company's products or actions taken by our customers in response to the difficult economic environment, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives and cost reduction plans, currency movements and other risks of conducting business internationally, volatility in the credit and securities markets and the impact of regulatory and litigation matters, including the continued availability of the Company's net operating loss offset to taxable income, and those that impact the Company's ability to protect and use its intellectual property.  Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements.  Additional information regarding these and other risks is contained in the Company's periodic filings with the SEC.

About Graphic Packaging Holding Company

Graphic Packaging Holding Company GPK, headquartered in Atlanta, Georgia, is a leading provider of packaging solutions for a wide variety of products to food, beverage and other consumer products companies.  The Company is one of the largest producers of folding cartons and holds a leading market position in coated-unbleached kraft and coated-recycled board.  The Company's customers include some of the most widely recognized companies in the world.  Additional information about Graphic Packaging, its business and its products, is available on the Company's web site at www.graphicpkg.com.

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SOURCE Graphic Packaging Holding Company