Performance packaging and services provider Greif has concluded the divestment of its containerboard business to Packaging Corporation of America (PCA).
The agreement, first announced in July 2025, is valued at $1.8bn.
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Greif has now revised its full-year guidance for 2025, excluding the previously reported $168m in year-to-date adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) from the containerboard segment, along with an anticipated fourth-quarter performance of $50m associated with that business.
The updated guidance, which now reflects only ongoing operations for the fiscal year 2025, is projected to be between $507m and $517m in adjusted EBITDA.
The adjusted free cash flow guidance remains unchanged, although it has been adjusted by $15m to a new range of between $290m and $300m, accounting for the absence of expected cash contributions from the containerboard operations in September.
Greif president and CEO Ole Rosgaard stated: “The closing of this sale marks an important step forward for Greif.
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By GlobalData“This transaction unlocks immediate value for our shareholders and allows Greif to deliver stronger and more consistent earnings power, enhances our capital efficiency and accelerates debt reduction.”
Goldman Sachs served as the exclusive financial advisor to Greif throughout the transaction.
In August 2025, Greif announced plans to permanently close its steel and polymer drum manufacturing facility in Merced, California in September.
The Merced facility produces steel drums and various sizes of polymer containers. This decision aligns with the company’s strategy to optimise operations.
