The $165m (£100m) deal, which was announced in February, gives Graphic Packaging a presence in the healthcare packaging sector as well as adding to its existing business in the food and beverage market by capitalising on Benson’s customer base among major retailers.
Graphic Packaging, which has total sales of $4.5bn, already has extensive food and beverage operations in the UK and Europe, following its £81m acquisition of Contego’s food and drink cartons operation in 2012, though that deal did not include Contego’s healthcare arm.
The Benson deal lifts turnover in Graphic Packaging’s European folding cartons division to more than $700m. The company expects it will generate synergies of $5m-$7m over the next 18 months, driven by benefits in procurement and operations from its larger size, though not through any large-scale changes in operations.
“The convenience/retail, healthcare, consumer and beverage sectors are quite distinct, and it is not anticipated there will be any major restructuring as a consequence of the Benson Group acquisition,” a Graphic Packaging spokeswoman said. “There is always room for improvement, and we expect synergies to improve our returns long term.”
Benson employs 940 staff in the UK at sites in Crewe, Gateshead, Newcastle and Bardon, Leicestershire. The group was bought by a management team led by managing director Mark Kerridge and commercial director Nick Benson in December 2011.
Graphic Packaging also aims to find suitable applications for Benson Group to use its SUS virgin paperboard, which is produced at its mills in Georgia and Louisiana in the US and is already used by some of its other European operations.
It has no plans to produce this board in the UK but said it was suitable for applications in channels including frozen, refrigerated and dry grocery products.
Graphic Packaging completes Benson purchase
Graphic Packaging, the US-based packaging multinational, does not expect there will be “any major restructuring” at Benson Group after it completed its acquisition of the UK company.