(Adds deal details, CEO comment)
May 14 (Reuters) - Graphic Packaging Holding Company said on Friday it would acquire Europe’s AR Packaging from CVC Capital Partners Fund for about $1.45 billion in cash to expand its footprint.
Graphic Packaging said the deal with Europe’s second-largest producer of fiber-based consumer packaging is expected to add $1.1 billion to its annual sales, besides being immediately accretive to its earnings per share and cash flow.
“The large, distributed footprint of AR Packaging’s 25 converting facilities across Eastern and Western Europe provides significant scale and cost efficiency benefits,” Graphic Packaging Chief Executive Officer Michael Doss said in a statement.
The deal, which has been unanimously approved by the boards of both the companies, is expected to close in four to six months.
BofA Securities is serving as financial adviser to Graphic Packaging, while Credit Suisse International is advising AR Packaging. (Reporting by Shreyasee Raj; Editing by Devika Syamnath and Maju Samuel)