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.

“We are pleased with the conclusion of the CPG strategic review process,” said Pete Watson, Greif’s President and Chief Executive Officer. “The sale of CPG allows us to de-lever our balance sheet and optimize capital allocation plans. By divesting these assets, we can refocus our business on our core industrial franchise and our stated strategic growth priorities in Intermediate Bulk Container production and reconditioning and containerboard integration.”

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.


1808AM
Sign up here for 1808AM, our incredible weekday morning enewsletter, bringing you the latest Delaware County news -- for free!
You May Also Like

New Stores Open On Gemini Place

Located in front of Polaris Fashion Place on Gemini Place, four new…

Blue Bird First To Offer New School Bus Fueled By Compressed Natural Gas

School districts and transportation contractors can now purchase buses fueled by compressed…

Multi-Tenant Food And Beverage Venue Coming To Polaris Fashion Place

The game of reinvention continues in the retail world as online shopping…

SourcePoint Receives New Delivery Van Donation For Meals On Wheels

SourcePoint recently received a gift from Greif, a leading global industrial packaging…