$1.8 billion combination of Graphic Packaging with IP’s bleached board unit seen as SBS market solidifier
OAKLAND, CA, Oct. 27, 2017 (PPI Pulp & Paper Week) -In a widely anticipated, yet "creatively" structured move, Graphic Packaging (GPK) will combine with International Paper's (IP) consumer packaging business in a $1.8 billion transaction, with IP retaining a 20.5% stake of a new "partnership" that is valued at $1.14 billion.
"Many holders of GPK wanted a deal with IP and are getting it," said one analyst.
"On first blush ‒ appears a win/win for both companies," wrote another. "The announcement isn't a surprise. However, we find the structure interesting."
The "new" Graphic Packaging will own 79.5% of the partnership and will be ...