Graphic Packaging Holding Company, a leading provider of packaging solutions to food, beverage and other consumer products companies, today announced that its wholly-owned subsidiary, Graphic Packaging International, Inc., has agreed to offer to purchase 100% of the outstanding shares of Colorpak (ASX: CKL), a leading folding carton supplier in Australia and New Zealand.
"We are very pleased to announce the agreement to acquire Colorpak," said Michael Doss, Graphic Packaging's President and Chief Executive Officer. "Similar to our strategy in the U.S and Europe, we are committed to growing our business in developed food and beverage end markets and optimizing our global supply chain. While Graphic Packaging currently has a well-established presence in Australia, the acquisition of Colorpak and its three world class folding carton manufacturing facilities allows us to expand our proven integrated supply chain in the Australia and New Zealand food, beverage and consumer product markets. This acquisition will broaden our customer base and offer current customers a wider range of products."
Colorpak operates three folding carton facilities that convert approximately 38,000 tons of paperboard annually into folding cartons for the food, beverage and consumer product markets. The folding carton facilities are located in Melbourne, Australia, Sydney, Australia and Auckland, New Zealand. The acquisition is subject to Colorpak shareholder approval, court and regulatory review, and standard closing requirements. Subject to those conditions, the transaction is expected to close in the second quarter of 2016.