Greif, Inc. Announces Definitive Agreement to Divest 50% Stake in Flexible Packaging Joint Venture to Gulf Refined Packaging for $123 million

Rhea-AI Summary

Greif, Inc. (NYSE: GEF, GEF.B) announced the divestiture of its 50% stake in the Flexible Packaging joint venture to Gulf Refined Packaging for $123 million. The cash proceeds will be allocated for debt repayment. This strategic move follows differing views with the joint venture partner on the future of the FPS business. Greif expects the transaction to close by March 31, 2022, leading to an adjustment in its Fiscal 2022 guidance. CEO Pete Watson emphasized the value derived from this disciplined capital allocation.

Positive

• Divestiture of 50% stake in FPS generates $123 million cash, aiding debt repayment.
• Strategic alignment following differing partner views enhances focus on core business.

Negative

• None.

DELAWARE, Ohio, Jan. 3, 2022 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today that it has entered into a definitive agreement to divest its 50% share in the Flexible Packaging joint venture, or "FPS" to Gulf Refined Packaging (GRP) for a total cash consideration of $123 million, subject to certain conditions and post-closing adjustments. Greif expects to use the proceeds for debt repayment.

"While we have worked closely with our joint venture partner, each partner held different views of the appropriate path forward for the FPS business," said Pete Watson, Greif's President and Chief Executive Officer. "As a result, we entered into a process to determine a single owner and utilized our disciplined capital allocation framework that resulted in an agreement to sell our ownership stake to GRP for significant value. I would like to thank our FPS colleagues for their hard work over the last 11 years and for their continued commitment to the business during the transition ahead."

The transaction is expected to close by March 31, 2022 at which point Greif will adjust its Fiscal 2022 guidance for the divestiture. 

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 40 countries to serve global as well as regional customers. Additional information is on the Company's website at www.greif.com. 

 

Contacts:
Matt Eichmann
Office: 740–549–6067
Email: matt.eichmann@greif.com

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SOURCE Greif, Inc.

FAQ

What is Greif, Inc.'s recent divestiture announcement about?

Greif, Inc. announced the divestiture of its 50% stake in the Flexible Packaging joint venture for $123 million.

How much will Greif, Inc. receive from the divestiture?

Greif, Inc. will receive $123 million in cash from the divestiture.

When is the transaction expected to close for Greif, Inc.'s divestiture?

The transaction is expected to close by March 31, 2022.

What will Greif, Inc. do with the proceeds from the divestiture?

Greif, Inc. plans to use the proceeds for debt repayment.

Why did Greif, Inc. decide to divest its stake in the Flexible Packaging joint venture?

The decision was made due to differing views with the joint venture partner on the appropriate path forward for the FPS business.