Graphic Packaging To Sell Multi-wall Bag Business To Mondi Group - Quick Facts

(RTTNews) - Graphic Packaging Holding Co. (GPK), a provider of packaging solutions to food, beverage and other consumer products companies, said the company and its subsidiary, Graphic Packaging International, Inc., have agreed to sell their Multi-wall Bag business to Mondi Group. The non-core assets to be sold consist of 9 Multi-wall Bag converting plants located across the U.S. and the Pine Buff, Arkansas kraft paper mill.

"The anticipated sale of these non-core assets substantially completes our transformation into a pure play, vertically integrated paperboard packaging company," said David Scheible, Graphic Packaging's Chairman, President and Chief Executive. He continued, "The divestiture will free up valuable resources which we can redirect to further accelerate global growth in our core paperboard packaging business."

The Multi-Wall Bag plants and the kraft mill had trailing 12-month revenue of around $437 million and as per the deal terms, the enterprise value is $105 million and the sale would be an all cash transaction. The transaction may close late second quarter or early third quarter 2014.