Greif, Inc. Completes the Sale of Flexible Packaging Joint Venture to Gulf Refined Packaging

Rhea-AI Summary

Greif, Inc. (NYSE: GEF, GEF.B) has finalized the divestiture of its Flexible Packaging joint venture (FPS) for $123 million to Gulf Refined Packaging. This strategic move aligns with Greif's Build to Last Strategy and aims to enhance financial strength through debt repayment. The transaction is expected to positively influence Greif's earnings guidance for Fiscal 2022. CEO Ole Rosgaard expressed gratitude to FPS employees and emphasized the importance of this divestiture for the company's future.

Positive

• Completed divestiture of Flexible Packaging joint venture for $123 million.
• Proceeds will be used for debt repayment, strengthening financial position.
• Sale factored into increased earnings guidance for Fiscal 2022.

Negative

• None.

DELAWARE, Ohio, April 1, 2022 /PRNewswire/ -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader and industrial packaging solutions provider, announced today that it has completed its previously announced divestiture of the Flexible Packaging joint venture, or "FPS" for a total cash consideration of $123 million, subject to certain conditions and post-closing adjustments, to Gulf Refined Packaging.

"Completion of the FPS divestiture and the exit of the joint venture relationship is an important step in advancing our Build to Last Strategy," said Ole Rosgaard, Greif's President and Chief Executive Officer. "I would like to thank our FPS colleagues for their hard work over the last 11 years and wish them the very best in the future."

Proceeds from the sale of FPS will be used toward debt repayment. The impact from this sale has been factored into Greif's recently announced increased earnings guidance for Fiscal 2022. 

About Greif

Greif is a global leader in industrial packaging products and services and is pursuing its vision: to be the best performing customer service company in the world. The Company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, 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.

Contact:
Matt Leahy
740-549-6158
matthew.leahy@greif.com 

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/greif-inc-completes-the-sale-of-flexible-packaging-joint-venture-to-gulf-refined-packaging-301515716.html

SOURCE Greif, Inc.

FAQ

What was the cash consideration for Greif's divestiture of the Flexible Packaging joint venture?

Greif's divestiture of the Flexible Packaging joint venture was for a total cash consideration of $123 million.

Who purchased Greif's Flexible Packaging joint venture?

Greif's Flexible Packaging joint venture was purchased by Gulf Refined Packaging.

How will the proceeds from the FPS sale affect Greif's financial strategy?

The proceeds from the FPS sale will be used towards debt repayment, enhancing Greif's financial strength.

What impact does the FPS sale have on Greif's earnings guidance for Fiscal 2022?

The impact from the FPS sale has been factored into Greif's recently announced increased earnings guidance for Fiscal 2022.

What strategy is Greif pursuing with the completion of the FPS divestiture?

The completion of the FPS divestiture is an important step in advancing Greif's Build to Last Strategy.