US packaging specialist Greif, Inc. has entered into a binding agreement to sell its containerboard business to Packaging Corporation of America for USD 1.8 billion in cash.
The transaction is expected to be completed by the end of the 2025 financial year at the latest and is subject to the usual regulatory approvals.
According to Greif, the sale is part of a targeted portfolio focussing as part of its „Build to Last“ strategy. The proceeds will primarily be used to repay debt, which should reduce the pro forma debt ratio to below 2.0 times EBITDA. In addition, the company is planning the previously announced sale of its forestry business. These steps are intended to create more efficient capital utilisation and investment scope for further growth.
CEO Ole Rosgaard explains: „The sale of our containerboard division is a decisive step in sharpening our portfolio, improving capital allocation and driving our growth targets.“ The remaining divisions have market-leading positions and are designed to increase margins and generate cash flow.
Source: Griffin
