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Graphic Packaging Holding CEO sells $1m shares

By Jenny Eagle+

25-Feb-2014
Last updated on 25-Feb-2014 at 11:39 GMT

Scheible sells 150,000 Graphic Packaging Holding shares.
Scheible sells 150,000 Graphic Packaging Holding shares.

Graphic Packaging Holding CEO David Scheible has sold 150,000 shares of his stock in an open market transaction.

The shares were sold at an average price of $10.47, on February 19, for a total value of $1,570,500.00 .

Benson Group acquisition

Following the completion of the sale, Scheible now owns 1,122,380 shares of the company’s stock, valued at approximately $11,751,319, according to the Mideast Times.

The transaction was disclosed in a filing with the Securities & Exchange Commission.

FoodProductionDaily.com reported last week the firm’s European subsidiary will buy Benson Group , a food and healthcare packaging company in the UK for $165m.

Scheible said at the time, the acquisition broadens its food and consumer products offerings and is expected to 'enhance its folding carton business in Europe, with sales in excess of $700m'.

The acquisition is subject to standard closing requirements and is expected to close in the second quarter.

Moorgate Capital

Speaking to FoodProductionDaily.com, Nicholas Mockett, head of Packaging M&A (mergers and acquisition) at Moorgate Capital advisory firm in London said it’s not unusual for management to sell shares.

Sometimes they are doing it because they have received a payment in shares, such as a bonus, and may need to sell some to meet a tax obligation, for example,” he said.

When a company sells shares, as opposed to a CEO selling some of his shares, it is quite often to raise a war chest for acquisitions.”

Graphic Packaging Holding last posted its quarterly earnings results on February 6.

Thomson Reuters

The company reported $0.17 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.13 by $0.04.

The company had revenue of $1.08bn for the quarter, compared to the consensus estimate of $1.15bn.

During the same quarter in the previous year, it posted $0.08 earnings per share and quarterly revenue was up 2.1% on a year-over-year basis.

Analysts expect Graphic Packaging Holding will post $0.63 EPS for the current fiscal year.