An agreement by Graphic Packaging Holding to acquire Å&R Carton’s Beer and Beverage Packaging business will help to create a manufacturing platform in Europe similar to Graphic’s US operations, the company says.
The move comes just weeks after Georgia, USA-based Graphic Packaging announced its acquisition of UK-based Contego Cartons’ European food carton business.
Graphic says the new combined packaging operation “will create a $500 million business in Europe”, and expects the new entity to generate US$16-$18 million of synergies over the next two years.
The Å&R beer & beverage business has hitherto operated on a stand-alone basis, with product range primarily consisting of solid board multipacks for brewery products.
“The acquisition of Å&R Carton’s Beer and Beverage packaging business enhances our position in the European beverage packaging market and enables us to extend our customer reach in the region,” says David Scheible, Graphic Packaging president and CEO.
“Å&R has a solid reputation as an innovative beverage packaging supplier and the combination allows us to better serve our global beverage customers with a broader base of new products and services.”
Similar to its strategy in the US, Scheible says Graphic is: “Committed to growing our European business around food and beverage end markets and optimising our supply chain footprint around our customers’ needs.”
A&R Carton CEO Harald Schulz adds that his company’s “diversification will reduce as a result of the divestment”, allowing it to concentrate on its five remaining strategic market segments – FMCG, tobacco, confectionery, food service and performance packaging.
Comprising production plants in Sneek, Netherlands, and Bremen, Germany, the A&R Beer and Beverage packaging business converts approximately 30,000 tons of paperboard annually.
Under the terms of the transaction, expected to close in late December, Graphic Packaging will pay approximately €19 million in cash and assume approximately €7 million in other net liabilities, subject to standard closing requirements.
Graphic Packaging International