Graphic Packaging to buy Benson Group for $165 million
The acquisition is expected to generate $5-$7 million of synergies over the next 18 months.
"We are very pleased to announce the acquisition of Benson Group. We believe Benson Group fits perfectly with our strategy in Europe. The acquisition broadens our Food and Consumer Products offerings and extends our reach into the Store Brand segment. The combination of Benson Group and our existing European businesses is expected to greatly enhance our folding carton business in Europe, with sales in excess of $700 million," said David Scheible, Graphic Packaging's chairman, president and chief executive officer.
"This combination also allows us to broaden our customer base and to offer our current global customers a wider range of new products and services. Like our strategy in the United States, we are committed to growing our European business around food and beverage end markets and optimizing our supply chain footprint around our customers' needs."
Under the terms of the transaction, the purchase price equates to approximately $165 million. The transaction will be funded with existing cash and borrowings from the Company's current revolving line of credit.
The Benson Group operates four folding carton facilities in the U.K. that convert approximately 80,000 tons of paperboard annually. The acquisition is subject to standard closing requirements and is expected to close in the second quarter. ■