Graphic Packaging has announced an agreement for one of its subsidiaries to acquire A&R Carton's Beer and Beverage packaging business in Europe for €26m. 

The A&R Beer and Beverage packaging business includes two folding carton facilities located in the Netherlands and Germany that annually convert about 30,000t of paperboard.

Graphic Packaging president and chief executive officer David Scheible said the acquisition is set to improve the company's position in the European beverage packaging market, besides enabling it to extend its customer reach in the region.

"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," Scheible said.

The acquisition, expected to close in late December 2012, will also enable the company to better serve its global beverage customers with a wide range of new products and services.