Graphic Packaging acquires Greif business unit

Graphic Packaging Holding Co., a packaging solutions company based in Atlanta, has acquired the Consumer Packaging Group (CPG) Business from Delaware, Ohio-based Greif Inc. 

According to a news release from Greif, the business unit was sold for $85 million in cash to Graphic Packaging. 

“Given our industrial focus, we were not the rightful owner of the CPG business,” says Pete Watson, president and CEO of Greif. “The sale helps us delever our balance sheet, optimize 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. I would like to thank our colleagues at CPG for their contributions to Greif during the past year and wish them the very best in the future.”

Greif reports that proceeds from the sale of the CPG business unit will be used toward debt repayment. Greif expects no material impact to its fiscal 2020 outlook or fiscal 2022 financial commitments from this sale, and the company expects at least $70 million synergies over 36 months from the closing of the Caraustar acquisition, which was completed in the first quarter of 2019.