Graphic Packaging Concludes Acquisition of Letica's Foodservice Assets

SEATTLE (Scrap Monster): Graphic Packaging International, LLC, a subsidiary of the Atlanta, Georgia-headquartered Graphic Packaging Holding Company announced completion of acquisition of foodservice assets of Letica Corporation.

The acquisition of substantially all of the Letica assets and its related entity PFP Dallas Converting, for a sum of approximately $95 million, was announced earlier in August this year. Letica Corporation is a subsidiary of RPC Group Plc and it operates two foodservice converting plants in Clarksville, Tennessee and Pittison, Pennsylvania.

The new acquisition is expected to enhance Graphic Packaging’s position in the growing paperboard-based foodservice market in North America. In addition to expanding its footprints, the acquisition is also expected to further diversify its customer base.

Earlier in 2018, Graphic Packaging Holding Company had combined International Paper’s North America Consumer Packaging business with its existing business, by owning 79.5% of the combined entity. Over the past couple of years, the company has spent nearly $1.5 billion in acquisitions, which also includes the big-ticket acquisition of the U.K.-based rigid plastics recycler PLASgran Ltd.

Graphic Packaging had posted net sales of $1.5 billion in Q2 this year. Letica’s revenue totaled $110 million during the fiscal year ended June 2018. Integration of additional solid bleached sulfate (SBS) paperboards, substantially lower logistics costs and other cost efficiencies are expected to boost synergies from the acquisition.