Greif Completes Acquisition Increasing Ownership in Centurion Container LLC from 9% to 80%

Rhea-AI Summary

Greif, Inc. (NYSE: GEF, GEF.B) has successfully acquired an 80% stake in Centurion Container LLC, increasing its ownership from 9% in an all-cash deal valued at $145 million. This transaction, funded through Greif's existing credit facility, is expected to enhance Greif's market presence in North America, particularly in reusable packaging solutions. Greif's CEO Ole Rosgaard emphasized the acquisition's alignment with its growth strategy and commitment to sustainability. Centurion, a leader in IBC and plastic drum reconditioning, has shown rapid growth since Greif's initial investment in 2020, signaling potential for future revenue expansion.

Positive

• Acquisition increases ownership in Centurion to 80%, enhancing market control.
• Deal valued at $145 million reflects strategic growth and expansion into North America.
• Centurion's established reconditioning network aligns with Greif's sustainability goals.

Negative

• None.

DELAWARE, Ohio, April 3, 2023 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced it has completed an acquisition increasing its ownership in Centurion Container LLC ("Centurion"), a leader in North American intermediate bulk container ("IBC") and plastic drum reconditioning, from 9% to 80% in an all-cash transaction for $145 million, subject to customary closing adjustments, funded through Greif's existing credit facility. Since joint venture inception in 2020, Centurion's experienced management team has successfully scaled a broad reconditioning network which, now under Greif majority ownership, will greatly expand Greif's presence in North America and Centurion's offering of reusable and sustainable packaging solutions. 

"The Centurion joint venture has seen rapid growth since our initial investment in 2020," said Ole Rosgaard, President and Chief Executive Officer of Greif. "We are excited to take a majority stake in this business as it aligns with our strategy, is immediately margin-accretive and directly supports our third Build to Last mission of Protecting our Future through investments in the circular economy."

Michael Chorpash, President and CEO of Centurion, remarked "Greif has been a tremendous partner these past three years, and we are excited to continue to grow Centurion with them.  Our two companies align well with our shared commitments to advance a circular economy and reduce greenhouse gas emissions."

Centurion's financial results will be reported within the Greif Global Industrial Packaging segment.

About Greif, Inc.

Greif is a global leader in industrial packaging products and services and is pursuing its vision: be the best performing customer service company in the world. The Company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, jerrycans and other small plastics, 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 35 countries to serve global as well as regional customers. Additional information is on the Company's website at www.greif.com. 

About Centurion Container LLC

Centurion Container, chaired by industry veteran Elliot Pearlman, is a leading supplier of industrial packaging, specializing in IBC and plastic drum reconditioning.  Centurion operates eight reconditioning facilities across the United States and offers nationwide IBC collection and logistics support. Centurion's management team represents six generations of container reconditioning and an unparalleled depth of experience that yields a unique advantage to the marketplace.

Investor Relations contact information

Matt Leahy
Vice President, Corporate Development & Investor Relations
740-549-6158 / Matthew.Leahy@Greif.com

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SOURCE Greif, Inc.

FAQ

What is the significance of Greif's acquisition of Centurion Container?

The acquisition enhances Greif's ownership in Centurion Container from 9% to 80%, expanding its market position in North America.

How much did Greif pay for the acquisition of Centurion Container?

Greif completed the acquisition for $145 million.

What are the expected benefits of acquiring Centurion Container for Greif?

The acquisition is expected to provide immediate margin accretion and support Greif's sustainability initiatives.

When was the acquisition of Centurion Container completed?

The acquisition was announced on April 3, 2023.

How will Centurion Container's financial results be reported?

Centurion's financial results will be included within Greif's Global Industrial Packaging segment.