An automatic machine is disclosed for packaging an array, or slug, of articles, such as cans, in a paperboard carton, wherein the carton is first provided in a flat blank form, is then preliminarily formed into a U-shaped configuration, and then final wrapped around the array of articles, to be subsequently glued up and sealed so as to form a very compact paperboard carton for the articles. The machine includes a frame having a vertically movable elevator structure which is equipped with laterally opposed plows for engaging side panels of the paperboard blank, and for folding the side panels upwardly into a U-shaped configuration around the funnel portion of a packer in which the articles are held prior to being dropped onto the bottom panel of the blank. After the articles are positioned thereon, the elevator structure lowers the U-shaped blank, together with the articles, onto a pocket chain conveyor where the carton is fed laterally off the elevator to fold the top panel, and to fold the end panels associated with the side panels, as well as those associated with the top and bottom panels, into place. A conventional vertical compression unit is also used, and the manufacturer''s tab or flap is glued and folded in this portion of the machine.