Graphic Packaging completes previously announced purchase of UK-based food and healthcare packaging company Benson Group; combination of companies expected to generate US$5M-US$7M of synergies over next 18 months
May 27, 2014
Graphic Packaging Holding Company (NYSE: GPK), a leading provider of packaging solutions to food, beverage and other consumer products companies, today announced that that it has completed the previously announced acquisition of the business of Benson Group, a leading food and healthcare packaging company based in the United Kingdom.
"We are pleased to welcome the Benson customers and employees into Graphic Packaging," said David Scheible, Graphic Packaging's Chairman, President and CEO. "The strong presence of Benson Group in the store brand market complements Graphic Packaging's existing strengths in the consumer and beverage markets. I know that together we will set new industry standards for quality, customer service and innovation," adds Scheible.
The combination of Benson Group and Graphic Packaging's existing European businesses is expected to greatly enhance Graphic Packaging's folding carton business in Europe, with sales in excess of $700 million. "This combination 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," added Scheible.
Benson Group brings more than 200 customers and approximately 940 employees to Graphic Packaging, and operates four folding carton facilities in the United Kingdom that convert approximately 80,000 tons of paperboard annually.
Forward Looking Statements
Any statements of the Company's expectations in this press release constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements, including but not limited to those regarding the effect of the acquisition on the Company's competitive position, expected synergies and earnings, are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, the Company's ability to successfully integrate the acquisition and achieve synergies, inflation of and volatility in raw material and energy costs, cutbacks in consumer spending that could affect demand for the Company's products or actions taken by our customers in response to the difficult economic environment, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives and cost reduction plans, currency movements and other risks of conducting business internationally, volatility in the credit and securities markets and the impact of regulatory and litigation matters, including the continued availability of the Company's net operating loss offset to taxable income, and those that impact the Company's ability to protect and use its intellectual property. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements. Additional information regarding these and other risks is contained in the Company's periodic filings with the SEC.
About Graphic Packaging Holding Company
Graphic Packaging Holding Company (NYSE:GPK), headquartered in Atlanta, Georgia, is a leading provider of packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The Company is one of the largest producers of folding cartons and holds a leading market position in coated-unbleached kraft, coated-recycled boxboard multi-wall bag and specialty packaging. The Company's customers include some of the most widely recognized companies in the world. Additional information about Graphic Packaging, its business and its products, is available on the Company's web site at www.graphicpkg.com.