Graphic Packaging Holding Company Concludes Successful Partnership with International Paper; Exchanges Remaining Minority Partnership Interest

Rhea-AI Summary

Graphic Packaging Holding Company (NYSE: GPK) has successfully concluded its partnership with International Paper Company by acquiring the remaining membership interests in Graphic Packaging International Partners, LLC. This transaction involved exchanging 22,773,072 membership units for common stock, bringing the total shares outstanding to approximately 306.9 million. CEO Michael Doss highlighted the importance of this partnership in establishing leadership in fiber-based packaging and aiding growth initiatives outlined in Vision 2025. The partnership, formed during the combination with International Paper's consumer packaging business in January 2018, was mutually beneficial for both companies.

Positive

• Graphic Packaging now owns 100% of the Partnership, enhancing control over operations.
• The transaction positions the company for growth with increased scale in paperboard substrates.
• Aligned with Vision 2025, it strengthens Graphic Packaging's market position in sustainable packaging.

Negative

• None.

ATLANTA, May 24, 2021 /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK), (the "Company" or "Graphic Packaging") announced today the conclusion of its successful partnership with International Paper Company. The final tranche of the membership interests held by International Paper in Graphic Packaging International Partners, LLC (the "Partnership") were exchanged for an equivalent number of shares of Graphic Packaging common stock. As a result, Graphic Packaging now owns 100% of the Partnership.

Michael Doss, the Company's President and CEO, said, "The partnership with International Paper played an important role as we established our leadership position in fiber-based consumer packaging across all three paperboard substrates. The highly integrated model we have built enables us to serve a broad set of global customers with new and innovative packaging solutions, positioning us to achieve the ambitious growth and return goals established in Vision 2025. Through the combination with International Paper's consumer packaging business, along with our other organic and inorganic growth initiatives, we have built scale across all three paperboard substrates, and have unique flexibility to quickly meet changing demand patterns for  sustainable packaging solutions and deliver value for all stakeholders."

Doss added, "I want to thank Mark Sutton, Chairman and Chief Executive Officer, and the entire International Paper team for their contributions in building a platform to service and grow with new customers in attractive markets. The partnership was mutually beneficial and provided returns for both companies."

Graphic Packaging completed the combination with International Paper's North America Consumer Packaging Business in January 2018. Graphic Packaging owned 79.5% of the partnership and was sole manager, while International Paper owned 20.5%. As part of the final transaction, 22,773,072 membership units were exchanged for an equivalent number of shares of Graphic Packaging common stock. The total number of shares of the Company's common stock outstanding following the transaction is roughly 306.9 million shares.

About Graphic Packaging Holding Company
Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, is committed to providing consumer packaging that makes a world of difference. The Company is a leading provider of sustainable fiber-based packaging solutions for a wide variety of products to food, beverage, foodservice, and other consumer products companies. The Company operates on a global basis, is one of the largest producers of folding cartons and paper-based foodservice products in the United States, and holds leading market positions in coated recycled paperboard, coated unbleached kraft paperboard and solid bleached sulfate paperboard. The Company's customers include many of the world's most widely-recognized companies and brands. Additional information about Graphic Packaging, its business and its products is available on the Company's web site at https://www.graphicpkg.com/.

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SOURCE Graphic Packaging Holding Company

FAQ

What recent partnership conclusion did Graphic Packaging (GPK) announce?

Graphic Packaging announced the conclusion of its partnership with International Paper Company, acquiring full ownership of Graphic Packaging International Partners, LLC.

When did Graphic Packaging complete its combination with International Paper's consumer packaging business?

The combination was completed in January 2018.

What was the outcome of the partnership with International Paper for Graphic Packaging (GPK)?

The partnership allowed Graphic Packaging to enhance its market leadership in fiber-based packaging and achieve significant growth.

How many shares of common stock are outstanding for Graphic Packaging after the transaction?

Approximately 306.9 million shares of common stock are outstanding following the transaction.

What are the strategic goals associated with Graphic Packaging's Vision 2025?

Vision 2025 aims to achieve ambitious growth targets and improve returns by leveraging the company’s scale in sustainable packaging solutions.