{"id":9066,"date":"2025-09-03T06:06:08","date_gmt":"2025-09-03T10:06:08","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=9066"},"modified":"2025-09-03T06:06:08","modified_gmt":"2025-09-03T10:06:08","slug":"greif-concludes-1-8bn-sale-of-containerboard-business-to-pca","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=9066","title":{"rendered":"Greif concludes $1.8bn sale of containerboard business to PCA"},"content":{"rendered":"


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The agreement was first announced in July 2025. Credit: JHVEPhoto\/Shutterstock.com. <\/figcaption><\/figure>\n<\/p><\/div>\n

Performance packaging and services provider Greif has concluded the divestment of its containerboard business to Packaging Corporation of America (PCA). \u00a0<\/p>\n

The agreement, first announced in July 2025<\/a>, is valued at $1.8bn.<\/p>\n

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Greif has now revised its full-year guidance for 2025, excluding the previously reported $168m in year-to-date adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) from the containerboard segment, along with an anticipated fourth-quarter performance of $50m associated with that business.<\/p>\n

The updated guidance, which now reflects only ongoing operations for the fiscal year 2025, is projected to be between $507m and $517m in adjusted EBITDA.<\/p>\n

The adjusted free cash flow guidance remains unchanged, although it has been adjusted by $15m to a new range of between $290m and $300m, accounting for the absence of expected cash contributions from the containerboard operations in September.<\/p>\n

Greif president and CEO Ole Rosgaard stated: \u201cThe closing of this sale marks an important step forward for Greif.<\/p>\n

\u201cThis transaction unlocks immediate value for our shareholders and allows Greif to deliver stronger and more consistent earnings power, enhances our capital efficiency and accelerates debt reduction.\u201d<\/p>\n

Goldman Sachs served as the exclusive financial advisor to Greif throughout the transaction.<\/p>\n

In August 2025, Greif announced plans<\/a> to permanently close its steel and polymer drum manufacturing facility in Merced, California in September.<\/p>\n

The Merced facility produces steel drums and various sizes of polymer containers. This decision aligns with the company\u2019s strategy to optimise operations.<\/p>\n

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