Greif’s US$61.7M envaplast acquisition strengthens agrochemical packaging as Q3 EBITDA rises 25%

USA – Greif has completed the US$61.7 million acquisition of Spanish polymer container producer Envaplast, as the industrial packaging leader reported a 24.7% year-on-year Adjusted EBITDA increase to US$183.4 million in fiscal Q3 2026.

The acquisition, completed on 2 June 2026, gives Greif a strong foothold in Spain’s small polymer container market and expands its presence in agrochemical packaging, which represents the majority of Envaplast’s business. 

CFO Larry Hilsheimer stated that Envaplast met Greif’s acquisition criteria, including EBITDA margins above 18% and free cash flow conversion exceeding 50%. 

The company’s fiscal third-quarter net sales reached US$1.17 billion, up 3.5% year-over-year, while net income increased 156.7% to US$78.8 million.

Cost Optimisation and Balance Sheet Strengthening

Greif achieved US$90 million in cumulative run-rate cost savings earlier than expected, reaching the high end of its fiscal 2026 target, while reaffirming its goal of at least US$120 million in cumulative savings by the end of fiscal 2027. 

The company significantly strengthened its financial position, with total debt declining by US$1.69 billion to US$1.03 billion and the leverage ratio dropping to 1.1x, compared with 3.1x a year earlier. Net debt fell to US$741.9 million. 

The company’s polymer solutions segment includes both rigid industrial packaging and flexible products, serving customers across the chemical, agricultural, food and beverage, and pharmaceutical sectors with a diversified portfolio of containers, drums and intermediate bulk containers.

Segment Performance and Market Outlook

CEO Ole Rosgaard stated that the company’s results were not driven by stronger markets but by disciplined execution. 

Polymer solutions volumes increased 1.5% year-over-year, led by strength in intermediate bulk containers and large polymer containers. 

The company raised its full-year Adjusted EBITDA guidance to US$615 million to US$635 million, with adjusted free cash flow projected between US$305 million and US$325 million.

Greif also increased its quarterly dividend by 10.7% and executed a US$150 million share repurchase programme. 

The company expects the Envaplast acquisition to add approximately US$10-15 million in annual EBITDA and be accretive to earnings per share in the first full year of ownership.

Greif continues to target acquisitions in the US$50-150 million range that complement its existing product portfolio and geographic footprint, with a healthy pipeline of similar opportunities under evaluation.

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