Graphic Packaging owns 79.5% of the combined company and will be the sole manager. International Paper will own 20.5% of the combined company. Graphic Packaging has assumed $660 million of International Paper debt and concurrently has amended and restated its senior secured credit agreement.
There is no change to Graphic Packaging’s current Board of Directors or leadership team. International Paper has a two-year lock-up on the monetization of their ownership interest and cannot purchase GPK shares for a period of five years, subject to limited exceptions.
On a combined basis, Graphic Packaging is now a leading integrated paper-based packaging company with approximately $6 billion of projected revenue and approximately $1 billion of projected EBITDA post-synergies. Graphic Packaging is one of the largest producers of folding cartons and paper-based foodservice products in the US, has strategic folding carton and foodservice converting positions globally, and holds leading market positions in solid bleached sulfate paperboard, coated unbleached kraft paperboard and coated-recycled paperboard.
“We are excited to close this transformative transaction at the start of the new year,” said Michael Doss, president and CEO.