Packaging Corporation of America announces agreement to acquire Greif’s containerboard business
Packaging Corporation of America has entered into a definitive agreement to acquire the containerboard business of Greif, Inc. for $1.8 billion in cash. The transaction is expected to close by the end of PCA’s third quarter, subject to customary closing conditions and regulatory approvals.
The acquisition includes two containerboard mills with a total annual production capacity of approximately 800,000 tons, as well as eight sheet feeder and corrugated plants strategically located across the United States. Over the twelve months ended April 30, 2025, the business generated approximately $1.2 billion in sales and $212 million in EBITDA.
The transaction is expected to deliver approximately $60 million in pre-tax synergies, fully realized within two years post-closing. These synergies will derive from enhanced operational and production efficiencies at the mills, increased integration, mill grade optimization, and reduced transportation costs. Approximately half of the synergies are projected to be achieved by the end of the first year, with the remainder realized by the end of the second year.
The purchase price represents a multiple of 8.5 times LTM EBITDA and, including the $60 million in synergies, reflects a multiple of 6.6 times. The acquisition is expected to be immediately accretive to PCA’s earnings. PCA intends to finance the transaction through $1.5 billion in new debt along with existing cash on hand. Following the completion of the transaction, PCA’s pro forma net debt to EBITDA ratio will be approximately 1.7x.
Mark Kowlzan, CEO of PCA, commented: “This acquisition advances our strategy of profitable growth. The Greif mills are a strong strategic fit for PCA, enhancing our ability to support continued growth in our corrugated products business. We anticipate significant synergies with minimal capital investment, thanks to our operational expertise. Furthermore, the combined operations will open new opportunities for future high-return investments aligned with our customers’ needs.”
Tom Hassfurther, President of PCA, added: “We have great respect for Greif and are very pleased to finalize this agreement. Greif’s team has established solid customer relationships and operates well-capitalized facilities. This acquisition is a strong cultural fit for PCA, sharing our values of safety, innovation, and customer service. By leveraging the combined sales, service, and operational strengths of both organizations, we are confident we can deliver enhanced value to our corrugated and sheet feeder customers while driving additional growth and profitability.”
About Packaging Corporation of America
PCA is the third-largest producer of containerboard and a leading manufacturer of uncoated freesheet paper in North America. The company operates eight paper mills and 86 corrugated products plants and related facilities across the continent.
