Graphic Packaging Holding Company To Sell Augusta Paperboard Manufacturing Facility To Clearwater Paper Corporation For $700M
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Graphic Packaging Holding Company (GPK) has agreed to sell its Augusta, Georgia bleached paperboard manufacturing facility to Clearwater Paper Corporation (CLW) for approximately $700 million. The sale is based on an Adjusted EBITDA of about $100 million. Both companies see the transaction as aligning with their strategic growth plans, with GPK focusing on its Texarkana facility for future bleached paperboard production. The deal is expected to close in Q2 2024, pending regulatory approvals.
February 20, 2024 | 10:00 pm
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Graphic Packaging is selling its Augusta facility to Clearwater Paper for $700M, focusing on its Texarkana facility for future growth.
The sale of the Augusta facility by GPK to CLW for $700M is a strategic move, focusing on growth through its Texarkana facility. The transaction's impact on GPK's stock is neutral short term as it divests a significant asset, but aligns with long-term growth strategies.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Clearwater Paper acquires the Augusta bleached paperboard manufacturing facility from GPK for $700M, enhancing its position as a leading paperboard supplier.
CLW's acquisition of the Augusta facility from GPK for $700M is a strategic expansion, enhancing its position as a leading paperboard supplier. This move is likely to positively impact CLW's stock in the short term by expanding its operational capabilities and market reach.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90