
Packaging Corporation of America (PCA) has reached a definitive agreement to acquire the Containerboard business of Greif for $1.8bn.
PCA plans to fund the transaction using $1.5bn in new debt and available cash.
Greif will use the cash proceeds for debt repayment, which will contribute to more stable earnings for the company.
Greif president and CEO Ole Rosgaard said: “The sale of our Containerboard business is fully aligned with our Build to Last strategy and unlocks immediate value for our shareholders.
“It represents a pivotal step in our work to sharpen our portfolio, enhance our capital efficiency, and advance our growth priorities.”
The Greif Containerboard business operates two mills with a production capacity of around 800,000 tons (t) and has eight sheet feeders and corrugated plants in the US.

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By GlobalDataIn addition, the deal includes the CorrChoice sheet-feeder network.
For the 12 months ending 30 April 2025, the segment reported approximately $1.2bn in sales and $212m in earnings before interest, taxes, depreciation, and amortisation.
PCA president Tom Hassfurther said: “We have a great deal of respect for Greif and are very pleased to have reached [an] agreement to acquire this business.
“Greif’s people have developed deep and lasting relationships with their customers, who we look forward to serving with Greif’s well-capitalised facilities.”
The transaction is anticipated to close by the end of PCA’s third quarter (Q3), pending customary conditions and regulatory approvals.
BofA Securities advised PCA and committed financing for the transaction while Goldman Sachs served as the exclusive financial advisor to Greif.
PCA announced a net income of $203.8m, or $2.26 per share, for Q1 fiscal year 2025 (FY25), marking a 38.7% increase from the $146.9m reported in Q1 FY24.