Greif to sell Containerboard business to Packaging Corp. for $1.8B

Greif (GEF) has entered into a definitive agreement to divest its Containerboard business, including its CorrChoice sheet feeder network, in an all-cash transaction for $1.8B to Packaging Corporation of America (PKG). The transaction is expected to close by the end of Greif’s fiscal year 2025, and is subject to customary closing conditions, including regulatory approvals. Cash proceeds will be allocated to debt repayment, resulting in a pro-forma leverage ratio below 2.0x after the closing, to be further reduced with the previously announced planned divestiture of Greif’s timberland business. These actions will enable future disciplined capital redeployment and optionality for strategic growth investments. “The sale of our Containerboard business is fully aligned with our Build to Last strategy and unlocks immediate value for our shareholders. It represents a pivotal step in our work to sharpen our portfolio, enhance our capital efficiency, and advance our growth priorities,” said Ole Rosgaard, CEO. “Once finalized, our remaining material solutions all contain leadership positions to drive margin expansion and cash flow generation.”