Graphic Packaging Holding Co., based in Atlanta, has announced that it has entered into an agreement to sell its Graphic Packaging International Inc. (GPI) wholly owned subsidiary. The subsidiary, which makes multiwall bags, has been sold to the South African-based paper and packaging firm Mondi Group.
Graphic Packaging says it determined the assets to be sold were “noncore” assets. The assets include nine multiwall bag converting plants in the United States and the company’s Pine Buff, Arkansas, kraft paper mill.
“The anticipated sale of these noncore assets substantially completes our transformation into a pure play, vertically integrated paperboard packaging company,” says David Scheible, Graphic Packaging’s chairman, president and CEO. “The divestiture will free up valuable resources which we can redirect to further accelerate global growth in our core paperboard packaging business.”