Delaware-based Greif, Inc, a world leader in industrial packaging products and services, has announced that it has entered into a definitive agreement to sell its Consumer Packaging Group (“CPG”) business for $85 million in cash to Graphic Packaging Holding Company. Greif expects to use the proceeds for debt repayment.
Greif’s CPG business consists of seven converting facilities that manufacture folding cartons for consumer packaged goods businesses. Subject to the satisfaction of customary closing conditions, the companies expect to complete the transaction by March 31.
Greif expects no material impact to its Fiscal 2020 outlook or Fiscal 2022 financial commitments from this divestiture and reaffirms its expectation of at least $70 million synergies over 36 months from the closing of the Caraustar acquisition.
