Greif Completes the Sale of Its Consumer Packaging Group to Graphic Packaging for $85 Million
Greif's CPG business consists of seven converting facilities across the U.S. that manufacture folding cartons for consumer packaged goods businesses.
April 1, 2020 - Greif, Inc. announced today that it has completed its previously announced divestiture of the Consumer Packaging Group ("CPG") business for $85 million in cash to Graphic Packaging Holding Company. "Given our industrial focus, we were not the rightful owner of the CPG business. The sale helps us de-lever our balance sheet, optimize our capital allocation plans and refocuses our business on our core industrial franchise and strategic growth priorities in Intermediate Bulk Container production and reconditioning and containerboard integration," said Pete Watson, Greif's President and Chief Executive Officer. "I would like to thank our colleagues at CPG for their contributions to Greif during the past year and wish them the very best in the future." Proceeds from the sale of CPG will be used toward debt repayment. Greif expects no material impact to its Fiscal 2020 outlook or Fiscal 2022 financial commitments from this sale and reaffirms its expectation of at least $70 million synergies over 36 months from the closing of the Caraustar acquisition. Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, is a leading provider of packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-unbleached kraft and coated-recycled board. To learn more about Graphic Packaging, please visit: www.graphicpkg.com. Greif is a global leader in industrial packaging products and services. The company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. To learn more, please visit: www.greif.com. SOURCE: Greif, Inc. Read a related story on PaperAge.com: Greif Agrees to Sell its Consumer Packaging Group Business to Graphic Packaging for $85 Million - Feb. 27, 2020. |