Graphic Packaging Holding Co., Atlanta, announced that its subsidiary, Graphic Packaging International, LLC, announced plans to acquire the foodservice business of Letica Corp., a Rochester Hills, Mich.-based subsidiary of RPC Group PLC, for $95 million.
Letica Foodservice produces paperboard-based cold and hot cups and cartons for the North America foodservice market. The company operates two foodservice converting facilities in Clarksville, Tenn., and Pittston, Pa.
"We are excited to announce the acquisition of the Letica Foodservice assets, as it extends our leading position in the growing paperboard-based foodservice market in North America," says Michael Doss, president and CEO . "The transaction will further diversify our customer base, enhance our geographic footprint and provide needed capacity to meet the incremental demand for paper cups resulting from the ongoing shift out of polystyrene foam. The transaction is consistent with the strategy we outlined after the combination with the SBS mill and foodservice assets that closed on Jan. 1, specifically our intent to grow our foodservice business organically and through acquisitions and drive higher integration levels for our SBS mills."