Graphic Packaging Holding, a Georgia-based provider of packaging solutions to food, beverage and other consumer products companies, is to purchase A&R Carton’s Beer and Beverage packaging business in Europe.

Under the agreement, Graphic Packaging will pay nearly €19m in cash and another €7m in other net liabilities.

The acquisition of A&R Carton’s Beer and Beverage Packaging business, which includes two manufacturing facilities in Netherland and Germany, complements Graphic’s recent acquisition of Contego Cartons that is expected to create $500m business in Europe.

Both acquisitions will provide Graphic Packaging with web and sheet-fed converting assets that will bring its Europe facility in line with its US operations.

Graphic Packaging president and CEO David Scheible said the acquisition will allow it to expand its position in the European beverage packaging business.

"A&R has a solid reputation as an innovative beverage packaging supplier and the combination allows us to better serve our global beverage customers with a broader base of new products and services," Scheible added.

"Similar to our strategy in the U.S., we are committed to growing our European business around food and beverage end markets and optimizing our supply chain footprint around our customers’ needs.

"The A&R acquisition, combined with last week’s announced acquisition of Contego Cartons, gives Graphic Packaging a significant position in the European folding carton market and widens the Company’s global footprint."

The A&R acquisition is subject to standard closing requirements and is expected to end in late December 2012.