US-based industrial packaging solutions provider Greif has completed the divestment of its Consumer Packaging Group (CPG) business.
The business was acquired by Graphic Packaging Holding Company (GPHC) for $85m.
Greif president and CEO Pete Watson said: “Given our industrial focus, we were not the rightful owner of the CPG business.
“The sale helps us de-lever our balance sheet, optimise 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.”
The deal closed more than a month after the two companies signed a definitive agreement to execute the transaction.
Greif’s CPG business comprised of seven converting facilities that produce folding cartons. The transaction will boost GPHC’s mill-to-converting plant integration levels as well as help to increase its footprint in the growing markets.
Greif plans to utilise the proceeds from the transaction to repay its debt.
At the time of the announcement, Watson said: “The sale of CPG allows us to de-lever our balance sheet and optimise capital allocation plans.
“By divesting these assets, we can refocus our business on our core industrial franchise and our stated strategic growth priorities in Intermediate Bulk Container production and reconditioning and containerboard integration.”
Greif’s product portfolio includes drums, intermediate bulk containers, reconditioned containers, tubes and cores among others.
Last year, the company acquired Caraustar Industries, a paperboard manufacturer, from global private equity investment firm HIG Capital for $1.8bn.