{"id":8001,"date":"2025-07-02T03:52:03","date_gmt":"2025-07-02T07:52:03","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=8001"},"modified":"2025-07-02T03:52:03","modified_gmt":"2025-07-02T07:52:03","slug":"pca-to-acquire-greifs-containerboard-business-for-1-8bn","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=8001","title":{"rendered":"PCA to acquire Greif\u2019s containerboard business for $1.8bn"},"content":{"rendered":"


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The segment runs two mills with a production capacity of approximately 800,000t. Credit: Max Zvonarev\/Shutterstock.<\/figcaption><\/figure>\n<\/p><\/div>\n

Packaging Corporation of America (PCA) has reached a definitive agreement to acquire the Containerboard business of Greif for $1.8bn.<\/p>\n

PCA plans to fund the transaction using $1.5bn in new debt and available cash.<\/p>\n

Greif will use the cash proceeds for debt repayment, which will contribute to more stable earnings for the company.<\/p>\n

Greif president and CEO Ole Rosgaard said: \u201cThe sale of our Containerboard business is fully aligned with our Build to Last strategy and unlocks immediate value for our shareholders.<\/p>\n

\u201cIt represents a pivotal step in our work to sharpen our portfolio, enhance our capital efficiency, and advance our growth priorities.\u201d<\/p>\n

The Greif Containerboard business operates two mills with a production capacity of around 800,000 tons (t) and has eight sheet feeders and corrugated plants in the US.<\/p>\n

In addition, the deal includes the CorrChoice sheet-feeder network.<\/p>\n

For the 12 months ending 30 April 2025, the segment reported approximately $1.2bn in sales and $212m in earnings before interest, taxes, depreciation, and amortisation.<\/p>\n

PCA president Tom Hassfurther said: \u201cWe have a great deal of respect for Greif and are very pleased to have reached [an] agreement to acquire this business.<\/p>\n

\u201cGreif\u2019s people have developed deep and lasting relationships with their customers, who we look forward to serving with Greif\u2019s well-capitalised facilities.\u201d<\/p>\n

The transaction is anticipated to close by the end of PCA\u2019s third quarter (Q3), pending customary conditions and regulatory approvals.<\/p>\n

BofA Securities advised PCA and committed financing for the transaction while Goldman Sachs served as the exclusive financial advisor to Greif.<\/p>\n

PCA announced a net income<\/a> of $203.8m, or $2.26 per share, for Q1 fiscal year 2025 (FY25), marking a 38.7% increase from the $146.9m reported in Q1 FY24.<\/p>\n

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