Graphic Packaging to acquire AR Packaging Group for $1.45bn

Graphic Packaging, a US-based fiber-based consumer packaging solutions provider, has agreed to acquire AR Packaging Group from CVC Capital Partners Fund VI for about $1.45 billion in cash.

AR Packaging Group is a Swedish producer of fiber-based consumer packaging.

According to Graphic Packaging, the combination will improve its global scale, capabilities in innovating, and value proposition for customers across Europe and bordering areas.

The combined company with a wide set of packaging solutions, expertise in design, and expanded geographic footprint will be positioned uniquely to seize continued organic growth opportunities across existing and new customers and markets across the world.

The acquisition of AR Packaging is anticipated to add annual sales of $1.1 billion to Graphic Packaging.

Graphic Packaging to acquire Swedish packaging company AR Packaging Group for $1.45bn. Photo courtesy of AR Packaging Group.

Michael Doss – Graphic Packaging President and CEO said: “AR Packaging is a leader in the attractive and growing market for sustainable packaging in Europe. Acquiring AR Packaging will result in significant value creation opportunities for our customers, our employees, and our stockholders as we bring together two leading providers of fiber-based consumer packaging solutions with long histories of innovation and creative packaging design.

“The large, distributed footprint of AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits strengthening our combined presence and ability to service customers throughout Europe and globally.”

AR Packaging has a workforce of 5,000 people and 30 factories across 13 countries. The company provides a variety of packaging solutions from its specialized plants.

It was established in 2011 via the merger of A&R Carton and Flextrus. In 2016, CVC Capital Partners acquired AR Packaging Group from its then owners Ahlstrom Capital and Accent Equity.

Harald Schulz – AR Packaging President and CEO said: “Graphic Packaging’s shared approach to customer service and deep focus on providing innovative, sustainable solutions closely aligns with how we operate our own business, making them an ideal partner. The ability to leverage beneficial value chain integration, from paperboard manufacturing to carton converting, provides increased possibilities to offer sustainably optimized solutions to our customers.

“Our team looks forward to joining with the Graphic Packaging team to become the premier global provider of sustainable fiber-based packaging solutions.”

The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to be wrapped up in four to six months.