Graham Packaging (York, Pennsylvania; www.grahampackaging.com) is to acquire packaging specialist Liquid Container (West Chicago, Illinois / USA; www.liquidcontainer.com) for USD 568m. The deal is expected to be concluded by the end of 2010. Liquid Container operates 14 plastic container blow moulding plants in the US. Its products are used primarily in food packaging, which accounts for 80% of sales. It is forecast to have annual sales in North America of almost USD 400m and operating profit (EBITDA) of around USD 72m in 2010.

Mark Burgess, CEO of Graham Packaging, said: “Liquid Container’s business model has been similar to Graham's in its use of technology to service categories in the market that require value added products. Liquid Container has built solid long standing relationships with customers that are complementary to ours with very little overlap.” He added that, in addition to the company’s presence in the food business, it brings technology that can be applied across Graham’s international business. Graham believes the transaction will be accretive on an EBITDA, EPS, and free cash flow basis in its first full year of operation.