GEF Boosts Debt-Reduction Efforts With Sale of Containerboard Business

Core Viewpoint - Greif, Inc. has successfully completed the sale of its containerboard business to Packaging Corporation of America, which is expected to enhance the company's capital efficiency and support its debt-reduction strategy [1][6]. Group 1: Deal Details - The definitive agreement for the sale was signed on July 1, 2025, and includes two containerboard mills with a production capacity of 800,000 tons, along with eight sheet feeder and corrugated plants across the U.S. [2] - The containerboard business generated revenues of $1.2 billion and EBITDA of $212 million for the fiscal year ending April 30, 2025 [2]. Group 2: Strategic Alignment - This divestment is part of Greif's "Build to Last" strategy, aimed at optimizing the portfolio, enhancing capital efficiency, and accelerating growth [3][6]. - Improved capital efficiency will reduce the need for recurring capital expenditures, enabling the company to pay down debt and create value [3]. Group 3: Financial Guidance Update - Following the divestment, Greif updated its fiscal 2025 adjusted EBITDA guidance to $507-$517 million, excluding $168 million in adjusted EBITDA year to date and $50 million anticipated for the fourth quarter from the sold business [4]. - The adjusted free cash flow guidance was revised to $290-$300 million from the previous $305-$315 million [4]. Group 4: Stock Performance - Greif's stock has increased by 7.2% over the past year, contrasting with a 9.9% decline in the industry [5].