USA – American manufacturing company, Greif has acquired 51% stake in ColePak, a supplier of paper partitions in North America in an all-cash transaction funded through Greif’s existing credit facility.
ColePak is the second-largest supplier of paper partitions in North America and has a compelling future growth path in that unique product niche.
As partners, ColePak adds a completely new product offering to the Greif paper converting portfolio, which provides integration to the Greif mill system in both containerboard and URB grades.
Additionally, the ColePak margin profile is immediately accretive to the Greif portfolio. A shared set of company values, a growth-oriented business profile, and exposure to stable and growing food and beverage end markets all further highlight the strong strategic fit, which closely reflects the growth priorities we outlined at our Investor Day in 2022.
Greif president and CEO Ole Rosgaard said: “ColePak has done a phenomenal job of growing a thriving and financially successful business due to their strong values, relentless customer-service focus, and robust family culture.
“Those fundamental characteristics of their business mirror our approach at Greif, which is why this is such a compelling partnership.
“As a part of the Greif portfolio, we plan to share best practices from our multi-national perspective with ColePak to further elevate their opportunities, while also advancing our Build to Last priorities.”
ColePak is expected to expand the Greif paper converting portfolio with a new product offering. This will enable the integration of the Greif mill system in the containerboard as well as URB grades.
The deal is further backed by similar company values, a growth-oriented business profile, and exposure to stable and expanding food and beverage end markets.
ColePak second-generation owners Jason and Ryan Cole added: “The Cole family is excited to begin this journey with Greif. Greif has been a supplier to ColePak for over 35 years, and the Cole family has developed great trust and admiration for Greif, which has culminated in this partnership.
“Their noncompromising commitment to their customers, their employees, and quality of product align well with the ColePak values, and we look forward to the continued success and the growth this partnership will provide into the future.”
Greif is engaged in the production of industrial packaging products like steel, plastic, and fiber drums, intermediate bulk containers, and others.
Meanwhile, in April Greif increased its stake in Centurion Container LLC in an all-cash transaction valued at US$145 million.
The deal pending customary closing adjustments will increase Greif’s ownership in the company from 9% to 80%.
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