NEW YORK (TheStreet) -- Shares of Graphic Packaging Holding Co. (GPK) are up 1.49% to $11.27 on Tuesday following the company's decision to sell its bags and kraft paper business to Mondi Group for $105 million in cash.
Mondi is a South African paper and packaging company looking to expand its presence in the U.S., Reuters reported.
The company said the transaction is expected to close in the early part of the 2014 third quarter.
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TheStreet Ratings team rates GRAPHIC PACKAGING HOLDING CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRAPHIC PACKAGING HOLDING CO (GPK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."