Graphic Packaging Holding CEO sells $1m shares

Graphic Packaging Holding CEO David Scheible has sold 150,000 shares of his stock in an open market transaction.

The shares were sold at an average price of $10.47, on February 19, for a total value of $1,570,500.00.

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Benson Group acquisition

Following the completion of the sale, Scheible now owns 1,122,380 shares of the company’s stock, valued at approximately $11,751,319, according to the Mideast Times.

The transaction was disclosed in a filing with the Securities & Exchange Commission.

FoodProductionDaily.com reported last week the firm’s European subsidiary will buy Benson Group, a food and healthcare packaging company in the UK for $165m.

Scheible said at the time, the acquisition broadens its food and consumer products offerings and is expected to 'enhance its folding carton business in Europe, with sales in excess of $700m'.

The acquisition is subject to standard closing requirements and is expected to close in the second quarter.

Moorgate Capital

Speaking to FoodProductionDaily.com, Nicholas Mockett, head of Packaging M&A (mergers and acquisition) at Moorgate Capital advisory firm in London said it’s not unusual for management to sell shares.

Sometimes they are doing it because they have received a payment in shares, such as a bonus, and may need to sell some to meet a tax obligation, for example,” he said.

When a company sells shares, as opposed to a CEO selling some of his shares, it is quite often to raise a war chest for acquisitions.”

Graphic Packaging Holding last posted its quarterly earnings results on February 6.

Thomson Reuters

The company reported $0.17 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.13 by $0.04.

The company had revenue of $1.08bn for the quarter, compared to the consensus estimate of $1.15bn.

During the same quarter in the previous year, it posted $0.08 earnings per share and quarterly revenue was up 2.1% on a year-over-year basis.

Analysts expect Graphic Packaging Holding will post $0.63 EPS for the current fiscal year.