Greif, Inc. has entered into a definitive agreement to divest its containerboard business, including its CorrChoice sheet feeder network, in an all cash transaction for $1.8 billion to Packaging Corporation of America. The transaction is expected to close by the end of Greif’s fiscal year 2025, and is subject to customary closing conditions, including regulatory approvals.
Cash proceeds will be allocated to debt repayment, resulting in a pro-forma leverage ratio below 2.0x after the closing, to be further reduced with the previously announced planned divestiture of Greif’s timberland business. These actions will enable future disciplined capital redeployment and optionality for strategic growth investments.
Strategic Rationale:
- Further positions Greif as a packaging leader
- Allows Greif to deliver more durable earnings
- Enhances capital utilization, reducing recurring capital needs
- Enables debt reduction, unlocking value-creation opportunities
“The sale of our containerboard business is fully aligned with our Build to Last strategy and unlocks immediate value for our shareholders. It represents a pivotal step in our work to sharpen our portfolio, enhance our capital efficiency, and advance our growth priorities,” said Ole Rosgaard, president and chief executive officer. “Once finalized, our remaining material solutions all contain leadership positions to drive margin expansion and cash flow generation.”
Published August 2025
