Graphic Packaging Holding Company and its wholly owned subsidiary Graphic Packaging International, have entered into a definitive agreement to sell their Multi-wall Bag business to Mondi Group.
The non-core assets to be divested include nine Multi-wall Bag converting plants across the US and the Pine Buff, Arkansas kraft paper mill.
"The anticipated sale of these non-core assets substantially completes our transformation into a pure play, vertically integrated paperboard packaging company," said David Scheible, chairman, president and CEO, Graphic Packaging.
"The divestiture will free up valuable resources which we can redirect to further accelerate global growth in our core paperboard packaging business."
The Multi-Wall Bag plants and the kraft mill had trailing 12 month revenue of approximately $437m. Under the terms of the agreement, the enterprise value is $105m and the sale will be an all cash transaction.
The transaction is subject to standard closing requirements and is expected to close late second quarter or early third quarter 2014.