Graphic Packaging Holding Company, a leading global 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 acquire several folding carton converting and paperboard mill assets from Cascades' Norampac Division in Canada. 

"The acquisition of Cascades' Norampac paperboard assets enhances our position in North American folding cartons and enables us to extend our customer reach in Canada," said David Scheible, Graphic Packaging's Chairman, President and Chief Executive Officer. "The transaction is a continuation of our acquisition strategy to grow integrated folding carton converting volumes in key geographies and end-markets.  These assets will broaden our customer base and allow us to offer our current customers a wider range of products." 

Under the terms of the transaction, the purchase price will be approximately $39 million based on trailing twelve month sales of approximately $215 million and adjusted EBITDA of approximately $5 million. Significant synergies are expected over the next 24 months. The transaction will be funded with existing cash and borrowings from Graphic Packaging's revolving line of credit.  Norampac operates three folding carton converting facilities located in Cobourg, Ontario, Mississauga, Ontario and Winnipeg, Manitoba, along with a Solid Bleached Sulfate (SBS) substitute mill located in Jonquiere, Quebec and a Coated Recycled Board (CRB) mill located in East Angus, Quebec.  The acquisition is subject to standard closing requirements and regulatory review and is expected to close in the first quarter of 2015.