By 1808Delaware
Delaware-based Greif, Inc., a global provider of industrial packaging products and services, has entered into a definitive agreement to sell its Containerboard business—including its CorrChoice sheet feeder network—to Packaging Corporation of America for $1.8 billion in cash. The deal marks a pivotal moment in the company’s ongoing strategy to realign its portfolio and focus on higher-margin, leadership-position material solutions.
The transaction is expected to close by the end of Greif’s fiscal year 2025, pending regulatory approval and customary closing conditions.
Fueling Financial Flexibility and Growth
Proceeds from the sale will be directed toward debt repayment, reducing Greif’s pro-forma leverage ratio to below 2.0x. This financial repositioning is expected to improve further with the company’s previously announced plan to divest its timberland business. The moves reflect Greif’s commitment to capital discipline and its ambition to reinvest strategically.
“This sale is fully aligned with our Build to Last strategy and unlocks immediate value for our shareholders,” said Ole Rosgaard, Greif’s President and CEO. “It’s a pivotal step in sharpening our portfolio, enhancing capital efficiency, and accelerating growth priorities.”
Strategic Rationale Highlights
According to the company, the transaction will:
- Strengthen Greif’s role as a global packaging leader
- Deliver more stable, recurring earnings
- Reduce long-term capital demands
- Unlock new value through targeted debt reduction
Each of these elements aligns with Greif’s strategic vision for a more focused, higher-margin business model.
