Packaging

Graphic Packaging Corporation and Altivity Packaging, LLC Complete Combination

Tuesday 11. March 2008 - Graphic Packaging Holding Company (NYSE:GPK) announced today that it has completed its previously announced combination of Graphic Packaging Corporation and Altivity Packaging, LLC. Graphic Packaging Holding Company had 2007 pro-forma revenues of approximately $4.4 billion and will be a leading provider of paperboard packaging solutions to the food, beverage and consumer products industries.

Commencing tomorrow, the common stock of Graphic Packaging Holding Corporation will trade on the New York Stock Exchange under the ticker symbol “GPK”. The new company’s headquarters are located in Marietta, Georgia but a significant presence will be retained in Chicago, where Altivity maintained its headquarters.

The transaction brings together two of the most progressive paperboard packaging companies to create a new leader in the global packaging market. The new company has a significantly expanded product portfolio, market reach, and technology capabilities to provide innovative packaging solutions in the folding carton, flexible packaging, label, multi-wall and specialty bag markets, as well as high quality paperboard, inks and packaging machinery to the food, beverage and consumer product sectors worldwide.

“I am very excited to have closed the transaction that we announced in July 2007, and to begin the implementation of the integration plan which will enable us to achieve the $90 million in annual gross synergies we identified at the beginning of this process. The integration teams are already in place and at work,” said David W. Scheible, President and Chief Executive Officer of Graphic Packaging Holding Company. “Although we will be required to divest two coated-recycled board (CRB) mills, we expect that these divestitures will have an immaterial impact on EBITDA and no impact on our ability to achieve the $90 million in synergies by 2012 with two-thirds of this being realized by 2010.”

The combination of Graphic Packaging and Altivity creates a company with pro-forma 2007 revenues of over $4.4 billion and pro-forma 2007 Adjusted EBITDA of approximately $553 million. Such pro-forma 2007 Adjusted EBITDA reflects an adjustment for one-time, non-recurring Altivity charges of approximately $30 million. Graphic Packaging achieved approximately $46 million of cost savings in 2007 with top line growth of approximately 4.3%. Altivity achieved over $50 million of standalone cost reductions, while growing its top line by almost 3%. The new company will be led by a combined management team with a strong track record of successfully integrating businesses and achieving performance targets. “I am very encouraged by the 2007 results of both companies as it gives us a solid base from which to build. We are confident that we can achieve not only the synergies arising from the combination, but also on-going operational cost reductions,” said Scheible.

“This transaction creates an attractive combination of our packaging strengths and high quality assets. It increases customer diversification, strengthens our market position, and achieves better operational and financial results through economies of scale and operating efficiencies,” said Scheible.

http://www.graphicpkg.com
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