Australian folding carton supplier Colorpak will be acquired by long-time business partner Graphic Packaging International.
Colorpak has entered into a Scheme Implementation Deed with the US-based packaging solutions provider. It will acquire all the issued shares of Colorpak via a Scheme of Arrangement.
“The proposal highlights the strategic value of our business and provides an opportunity for our shareholders to realise the value of their holdings at an attractive price,” Colorpak chairman Geoff Willis said.
Colorpak and Graphic Packaging have already been partnering to provide unique packaging solutions in Australia and New Zealand for close to a decade.
“This acquisition combines Colorpak’s leading folding carton capabilities with Graphic Packaging’s global expertise, and will enhance our ability to serve all customers in this market,” Graphic Packaging chairman David Scheible said.
Above: Graphic Packaging chairman David Scheible and Colorpak CEO Alex Commins.
“The acquisition of Colorpak is a logical progression from our long-term strategic partnership.
“Colorpak is a market leader in revenue and reputation, which makes it an exciting opportunity for Graphic Packaging to consolidate its position and grow its presence in the Australia and New Zealand folding carton market.”
Colorpak shareholders will receive cash payments of $0.68 per share including a cash payment of $0.57 from Graphic Packaging, as well as up to $0.11 franked dividends per share from Colorpak.
A Scheme booklet containing information relating to the proposed transaction, reasons for the directors' unanimous recommendation, details of the Scheme meeting, and the Independent Expert's report is expected to be sent to shareholders in late February.
Subject to the conditions of the Scheme being satisfied or waived, the Scheme is expected to be implemented in mid-April.
Alex Commins and Sid Troiani will remain in their roles as CEO and CFO respectively, and they will assume responsibility for Graphic Packaging International’s growth ambitions in Australia and New Zealand.
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, Sydney and Auckland, New Zealand.
Graphic Packaging Chairman, David Scheible (left) and Colorpak CEO, Alex Commins (right).
