Graphic Packaging Holding Company (GPK) and Clearwater Paper Corporation (CLW) announced that Graphic Packaging has signed a definitive agreement to sell its Augusta, Georgia, bleached paperboard manufacturing facility to Clearwater Paper. The deal value is about $700 million, based on Adjusted EBITDA of about $100 million.
The deal is subject to regulatory approvals and is expected to close in the second quarter of 2024. And TD Securities is serving as Clearwater Paper’s financial advisor and Pillsbury, Winthrop, Shaw, Pittman LLP is lead transaction counsel for Clearwater and Stoel, Rives LLP is providing environmental counsel. The financial advisor for Graphic Packaging is BofA Securities and Alston & Bird LLP is lead transaction counsel.
KEY QUOTES:
“Augusta is an outstanding asset with a great team, which we concluded is a more compelling fit with Clearwater Paper’s strategic growth plans than our own. Bleached paperboard plays a major role in sustainable consumer packaging, and we will continue to service growing foodservice and packaging demand with bleached paperboard from our Texarkana facility.”
- Michael Doss, President and Chief Executive Officer of Graphic Packaging
“Augusta is a great fit with our strategy and improves our position as a premier, independent paperboard supplier to North American converters. I look forward to welcoming the Augusta team to Clearwater Paper as we work together to build a more scaled paperboard business to service our customers.”
- Clearwater Paper Chief Executive Officer Arsen Kitch
