Greif completes US$1.8B containerboard business sale to PCA

USA – Greif, a global leader in performance packaging and services, finalized the US$1.8 billion sale of its containerboard business to Packaging Corporation of America (PCA), according to a company announcement. 

The transaction, advised exclusively by Goldman Sachs, is expected to enhance Greif’s financial flexibility and support long-term strategic goals.

Following the divestiture, Greif updated its 2025 full-year guidance, excluding US$168 million in year-to-date adjusted EBITDA from the containerboard segment and an estimated US$50 million from its fourth-quarter performance. 

The revised adjusted EBITDA projection for ongoing operations now ranges between US$507 million and US$517 million. 

Additionally, the company adjusted its free cash flow guidance by US$15 million, setting a new range of US$290 million to US$300 million, accounting for the loss of cash contributions from the containerboard business in September.

In a statement, Greif president and CEO Ole Rosgaard said, “The closing of this sale marks an important step forward for Greif, unlocking immediate value for our shareholders and enhancing capital efficiency.” 

He also noted that the transaction accelerates debt reduction, providing a stronger financial foundation for future growth.

In related developments, Greif announced in August 2025 the permanent closure of its steel and polymer drum manufacturing facility in Merced, California, effective September 2025. 

The facility, which produces steel drums and various polymer containers, is part of the company’s broader strategy to optimize its operational footprint. 

This move is expected to improve efficiency across Greif’s manufacturing network.

A recent industry update highlights growing demand for sustainable packaging solutions, with PCA reportedly planning to integrate Greif’s containerboard assets to expand its eco-friendly corrugated product offerings.

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