Graphic Packaging Forms Company With Delta Natural Kraft and Mid-America Packaging

Under the terms of the transaction, Graphic Packaging formed a new limited liability company and contributed the assets of its multi-wall bag and specialty plastics packaging businesses and CVI contributed its ownership interests in DNK and MAP to the newly formed company. Neither party received cash consideration as part of the transaction. However, the new company assumed approximately $25 million in third-party debt of DNK and MAP. Concurrent with the transaction, a majority of this assumed debt was repaid with the proceeds of an intercompany loan from Graphic Packaging. After the combination, Graphic Packaging owns approximately 87 percent of the new company and will consolidate its results of operations. The DNK and MAP businesses had annual revenues of approximately $150 million and the combination does not impact Graphic Packaging’s net leverage ratio. The remaining 13 percent of the new company is owned by CVI.