Graphic Packaging sells Augusta paperboard mill to Clearwater Paper for $700M

GRAPHIC PACKAGING HOLDING CO

Purchase price $700M in cash, based on ~$100M Adjusted EBITDA at the Augusta facility.
Transaction expected to close Q2 2024, subject to HSR and other regulatory approvals.
Clearwater Paper to fund via cash on hand and committed debt; no financing condition.
Graphic Packaging will continue bleached paperboard supply for foodservice from Texarkana.
Definitive purchase agreement signed February 20, 2024; termination date February 20, 2025.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

GRAPHIC PACKAGING HOLDING CO entered into Purchase Agreement with Clearwater Paper Corporation valued at $700,000,000 in cash consideration and assumption of certain liabilities (effective 2024-02-20).

Action: entry
Agreement: asset purchase
Counterparty: Clearwater Paper Corporation
Value: $700,000,000 in cash consideration and assumption of certain liabilities
Effective: 2024-02-20

Exact text from the filing

On February 20, 2024, Graphic Packaging International, LLC (the “Company”), a Delaware limited liability company and a wholly-owned subsidiary of Graphic Packaging Holding Company, and Clearwater Paper Corporation, a Delaware corporation (“CLW”), entered into a Purchase Agreement (the “Purchase Agreement), pursuant to which, among other things, the Company agreed to sell its paperboard manufacturing business located in Augusta, Georgia (the “Business”) to CLW in exchange for (i) $700,000,000 in cash consideration (subject to the adjustment as set forth in the Purchase Agreement, the “Purchase Price”) and (ii) the assumption of certain liabilities of the Business as specified in the Purchase Agreement (such transaction, the “Transaction”).

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Source: SEC EDGAR

accession 0001193125-24-040025

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