Greif Completes $1.8bn Containerboard Business Sale to PCA, Updates Guidance

Greif has concluded the $1.8bn sale of its containerboard business to Packaging Corporation of America (PCA). The company has revised its full-year guidance for 2025, excluding $168m in year-to-date adjusted EBITDA from the containerboard segment. The updated guidance is projected to be between $507m and $517m in adjusted EBITDA, with adjusted free cash flow guidance remaining unchanged. The sale is seen as an important step forward for Greif, unlocking immediate value for shareholders and accelerating debt reduction.

Greif, Inc. (NYSE: GEF) has concluded the sale of its containerboard business to Packaging Corporation of America (PCA) for $1.8 billion. The sale is a significant milestone for Greif, which has been working to streamline its operations and unlock immediate value for shareholders. The company has revised its full-year guidance for 2025, excluding $168 million in year-to-date adjusted EBITDA from the containerboard segment.

The updated guidance projects adjusted EBITDA to be between $507 million and $517 million, with adjusted free cash flow guidance remaining unchanged. This sale is expected to accelerate Greif's debt reduction efforts, which have been a key focus for the company.

The sale of the containerboard business to PCA is part of Greif's broader strategy to focus on its core industrial packaging products and services. The company has been actively pursuing acquisitions and divestments to optimize its portfolio and improve operational efficiency. This move is seen as a positive step forward for Greif, as it allows the company to reduce its debt burden and improve its financial health.

Greif's stock price has been volatile in recent months, with a significant increase in the past year. However, the company's performance has been mixed, with earnings and revenues showing varying results. The sale of the containerboard business is expected to have a positive impact on Greif's financials, as it will no longer be burdened by the segment's adjusted EBITDA.

Investors and financial professionals should closely monitor Greif's upcoming earnings reports and guidance updates to assess the impact of this transaction on the company's financial performance. The sale of the containerboard business is a significant event for Greif, and its long-term implications for the company's growth and profitability will be closely watched.

References:
[1] https://simplywall.st/stocks/us/materials/nyse-gef/greif