Graphic Packaging and International Paper’s Packaging operations are merging to create one of North America’s largest folding carton and packaging manufacturers. The new company, Graphic Packaging International, is projected to have sales of over $6 billion (USD). It’ll have plants in Canada, the United States and Europe, with International Paper owning 20% of the new company. Graphic Packaging (formally Cascades, Normpac Boxboard) currently has plants in Winnipeg, Manitoba, Mississauga, Ontario and Cobourg Ontario, employing almost 700 people.
“After evaluating a range of strategic options, we believe this transaction represents excellent value for International Paper’s shareholders,” said International Paper (IP) Chairman and CEO Mark Sutton. “Investing in Graphic Packaging gives IP the opportunity to benefit from a much stronger value-creation consumer packaging platform, while allowing us to remain focused on growing value in our core businesses. Our North America Consumer Packaging business has a talented team, very good assets and great customers, and I’m confident of the results the combined business will achieve.”
International Paper’s North America Consumer Packaging business is a leading producer and converter of solid bleached board used in a variety of fibre-based food service products such as hot and cold cups, cartons, paper plates, food containers and liquid packaging. The transaction also affects 3,900 coated paperboard and food service employees at 10 locations in the United States and the United Kingdom.