August 10, 2010 (FinancialWire) – Graham Packaging company Inc. (NYSE: GRM) said that its subsidiary, Graham Packaging acquisition Corp., has signed a purchase agreement to acquire Liquid Container, L.P. and its subsidiaries for total purchase consideration of $568 million, subject to certain adjustments.

Liquid Container operates fourteen blow molded plastic container plants in the U.S., serving food and household product categories. According to Graham, the firm is expected to have North American net sales of almost $400 million and EBITDA of around $72 million in 2010.

Around 80% of Liquid Container's unit sales are supplied to customers in the food category.

Mark Burgess, CEO of Graham, said, "Liquid Container takes our technology capability, customer base, and domestic footprint to the next level."

In addition to the customer and technology benefits, Graham believes the transaction will be accretive on an EBITDA, EPS, and free cash flow basis in its first full year of operation.

Graham said it expects to fund the acquisition with 100% debt and has arranged committed financing. The transaction is scheduled to close in 2010.

Pennsylvania-based Graham Packaging is engaged in the design, manufacture and sale of customized blow molded plastic containers for the branded food and beverage, household, personal care/specialty and automotive lubricants product categories.

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