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Paperboard Packaging Co. Is Result of Riverwood Holding Graphic Packaging Deal

Published: March 28, 2003, By PRESS RELEASE

ATLANTA & GOLDEN, CO, USA—Riverwood Holding Co., parent co. of Riverwood Intl. Corp., and Graphic Packaging Intl. Corp. report the companies have signed a definitive merger agreement that will create a global paperboard packaging company. According to the companies' press release, the new paperboard packaging entity will have "leading market positions" serving the beverage, food, and consumer products industries. "Under the terms of the transaction," states the companies' release, "Graphic Packaging, the leader in the folding carton consumer products packaging, and Riverwood, the leader in multi-pack beverage packaging, will merge in a stock transaction with an enterprise value of approximately US$3 billion." Adds the merger announcement:

The combined company will have 2002 pro forma revenues of approximately $2.3 billion and EBITDA in excess of $400 million. Management has identified broad-based operating synergies of $55 million, which are expected to be fully realized in the third year after closing. The transaction is expected to be accretive to earnings for both companies and the new entity is projected to generate substantial cash flow to reduce debt. The transaction has been approved by the boards of directors of both companies and by the shareholders of Riverwood.

The new company will have the scale, technologies, and rich product portfolio to enhance both companies' strong relationships with beverage, food, and consumer products companies worldwide.

Visit Riverwood at riverwood.com and Graphic Packaging at graphicpkg.com.

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