The Box is in Demand- October 2015 M&A Activity
The Box is in – paperboard, corrugated, decorated, foil-stamped, bar-coded, laminated, textured, embossed, pearlized, diecut, folded, glued, large and small. Folks in the business of printing love the box. Unlike the box’s troubled cousin, commercial printing, the box is reordered on a regular basis and is far less subject to disruption by online internet-based technologies.
Graphic Packaging International announced the acquisition of Carded Graphics, a Virginia-based printer of folding cartons used to package food, craft beers and other consumer products. The company utilizes two traditional offset printing presses and diecutting technologies. The acquired company, Carded Graphics, is clearly a small catch relative to the buyer, which has revenues in excess of four billion dollars. Nonetheless, regardless of the relative small size of the acquisition, the transaction is consistent with the company’s clearly articulated strategic plan to focus on the production of folding cartons. Graphic Packaging also announced in October that it was expanding into the Mexican market for folding cartons with the acquisition of G-Box. The acquired company prints and manufactures folding cartons and corrugated boxes.
As reported over the past four years in The Target Report, Graphic Packaging has been consistently executing on its folding carton strategy. In December 2014, the company acquired Toronto-based Norampac from Cascades, adding three Canadian folding carton plants as well as a two paperboard mills, thus integrating raw material production into its folding carton business. Previous expansion of its international footprint in folding carton production includes the company’s acquisition of the UK-based companies Benson Group and Contego Cartons, in 2014 and 2012 respectively, having also added the Netherlands-based A&R Cartons in 2012.
In alignment with its strategic plan, Graphic Packaging has divested assets unrelated to its core focus on folding cartons. The company sold its multi-wall bag and kraft business to the Mondi Group and its Di-Na-Ca Label Group to Multi-Color Corporation, both transactions completed in 2014.