- Greif, Inc. (GEF, Financial) sells its Containerboard business to Packaging Corporation of America for $1.8 billion in cash.
- The deal is anticipated to close by the end of fiscal year 2025, subject to regulatory approvals.
- Proceeds will be used to reduce debt, aiming for a pro-forma leverage ratio below 2.0x.
Greif, Inc. (GEF) has announced a definitive agreement to sell its Containerboard business, including the CorrChoice sheet feeder network, to the Packaging Corporation of America in an all-cash transaction valued at $1.8 billion. This strategic divestiture is expected to close by the end of Greif's fiscal year 2025, pending customary closing conditions and regulatory approvals.
The financial proceeds from this sale are earmarked for debt repayment, significantly lowering Greif's pro-forma leverage ratio to under 2.0x post-closing. This reduction in leverage is projected to further decrease with the planned divestiture of Greif's timberland business.
This move is part of Greif's "Build to Last" strategy, aimed at optimizing its portfolio and improving capital efficiency. With a focus on expanding its margins and enhancing capital utilization, Greif plans to concentrate on its high-margin industrial packaging products where it holds a leadership position. The transaction will enable Greif to redeploy capital toward strategic growth investments and enhance shareholder value.
Goldman Sachs served as the exclusive financial advisor to Greif for this transaction. A conference call and webcast have been scheduled for July 1st, 2025, at 8:30 AM Eastern to discuss the strategic rationale behind the divestment and its impact on proforma business operations.
