SUSSEX, Wisc. (From news reports) -- Quad/Graphics Inc. plans to sell its Omaha packaging plant for $40 million to Atlanta-based Graphic Packaging International while also continuing investments in other packaging operations.
"The Omaha plant's focus on high-volume, low-cost converting for folding cartons is a great fit with a vertically integrated supplier like Graphic Packaging, which operates both paperboard mills and converting facilities," said Joel Quadracci, chairman, president and chief executive officer of Quad.
The Nebraska facility is around 400,000 square feet and the business generates around $75 million in annual revenue while consuming 40,000 tons of paperboard, according to a Graphic Packaging release.
The deal is expected to close around Jan. 31 and Quad will use the proceeds to reduce debt.
This is the third announced or planned divestiture by Quad since its attempted acquisition of Chicago-based LSC Communications was derailed by U.S. Department of Justice opposition. Quad also sold Transpak, its heavy industrial wood crating business in Franklin, and announced plans to divest its $200 million book business.
"This divestiture allows us to focus on our higher-value packaging solutions that help clients create a cohesive brand experience across all channels - from consumer packaging to print, broadcast and digital advertising to instore signage and displays," Quadracci said.
Quad's remaining packaging business includes plants in Franklin, South Carolina, Massachusetts and the Dominican Republic.
The company re-equipped its Leominster, Massachusetts commercial printing plant last year to expand packaging operations in the northeastern U.S.
This year, Quad plans to expand operations in the Dominican Republic with a 30,000-square-foot addition to its Santo Domingo facility along with two new presses, a die cutter and a folder-gluer.
"We are proud of our packaging platform and our ability to serve premier brands in a variety of geographies and market verticals, including apparel, confectionary, health care, beauty, electronics, food and beverage," Quadracci said.