Greif, Inc. announced it 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 business generated approximately $1.2 billion in sales and $212 million of earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12 months ended April 30, 2025 (the LTM period).
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.
Packaging Corporation of America is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America.
Greif is a global leader in industrial packaging products and services and is pursuing its vision: being the best customer service company in the world.
