US-based packaging provider Graphic Packaging has signed an agreement to acquire a UK-based packaging provider Contego Cartons.

Graphic Packaging will pay about £71m in cash and about £10m in the form of other net liablilties under this acquisition.

The acquisition is expected to generate$8-$10m of synergies over next two years and will increase earnings in first full year after integration,said the company.

Contego Cartons has three folding carton facilities of which two are located in the UK and the other is located in the Netherlands.

Graphic Packaging president and chief executive officer said,"We are excited about the acquisition of Contego's Food and Consumer Carton business as it extends Graphic Packaging into new end markets,expands the Company's global footprint and provides new opportunities for growth."