The company, which has been suffering from falling sales, is also planning to raise $350m from an initial public offering in order to pay its debts.
Graham Packaging said that the sale of the French operation was due to “the failure of this subsidiary to meet internal financial performance criteria”. The plant has debt that is publicly traded and saw sales fall nearly 11% to $588.8m in the third quarter of this year.
The sale agreement has been signed by all parties, the company said, and the deal is expected to be finalised by the end of 2009.
The news came as Graham Packaging disclosed its third-quarter results. They revealed that sales in North America fell $61.7m (11%) to $500m, which it partly attributed to low costs.
Operating income over the period increased from $51.4m in the third quarter of 2008 to $71.6m in the same period this year.
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