DELAWARE, Ohio, Feb. 27,
2020 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a world
leader in industrial packaging products and services, announced
today that it has entered into a definitive agreement to sell
its Consumer Packaging Group ("CPG") business for $85 million in cash to Graphic Packaging Holding
Company (NYSE: GPK). Greif expects to use the proceeds for debt
repayment.
"We are pleased with the conclusion of the CPG strategic review
process," said Pete Watson, Greif's
President and Chief Executive Officer. "The sale of CPG allows us
to de-lever our balance sheet and optimize 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 CPG business consists of seven converting facilities
that manufacture folding cartons for consumer packaged goods
businesses. Subject to the satisfaction of customary closing
conditions, the companies expect to complete the transaction by
March 31st, 2020.
Greif expects no material impact to its Fiscal 2020 outlook or
Fiscal 2022 financial commitments from this divestiture and
reaffirms its expectation of at least $70
million synergies over 36 months from the closing of the
Caraustar acquisition.
Goldman Sachs & Co. LLC served as exclusive financial
advisor to Greif for this transaction. Allen & Overy LLP served
as Greif's exclusive legal advisor.
About Greif, Inc.
Greif is a global leader in industrial packaging products and
services and is pursuing its vision: In industrial packaging, be
the best performing customer service company in the world. The
Company produces steel, plastic and fibre drums, intermediate bulk
containers, reconditioned containers, flexible products,
containerboard, uncoated recycled paperboard, coated recycled
paperboard, tubes and cores and a diverse mix of specialty
products. The Company also manufactures packaging accessories and
provides filling, packaging and other services for a wide range of
industries. In addition, Greif manages timber properties in the
southeastern United States. The
Company is strategically positioned in over 40 countries to serve
global as well as regional customers. Additional information is on
the Company's website at www.greif.com.
Forward-Looking Statements
Except for historical information, all other information in this
release consists of forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. All
forward-looking statements are based on assumptions, expectations
and other information currently available to management. Such
forward-looking statements are subject to certain risks and
uncertainties that could cause the Company's actual results to
differ materially from those forecasted, projected or anticipated,
whether expressed or implied. The most significant of these risks
and uncertainties are described in Part I, Item 1A under "Risk
Factors" of the Company's most recently filed Form 10-K, as amended
by the Company's subsequent filings with the Securities and
Exchange Commission. All forward-looking statements made in this
news release are expressly qualified in their entirety by reference
to such risk factors. Except to the limited extent required by
applicable law, we undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact:
Matt Eichmann
740-549-6067
matt.eichmann@greif.com
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SOURCE Greif, Inc.