PCA to Buy Greif Inc.’s Containerboard Business

PCA will utilize $1.5 billion of new debt and cash on hand to finance the transaction.

SEATTLE (Scrap Monster): Packaging Corporation of America (PCA) announced that it has entered into a definitive agreement towards purchase of the containerboard business of Greif, Inc. 

Subject to certain standard closing conditions and required regulatory clearances, the $1.8 billion cash deal is anticipated to close by the end of the third quarter. To finance the deal, PCA will use cash on hand and $1.5 billion in new debt.

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The deal includes eight sheet feeder and corrugated factories spread across the United States, as well as two containerboard mills with a combined output capacity of about 800,000 tons. During the year that ended on April 30, 2025, these businesses produced about $1.2 billion in sales and $212 million in EBITDA.

According to a news release from PCA, synergies are expected to produce pre-tax benefits of about $60 million. By the end of the first year, over half of the advantages should be realized, and the remaining portion by the end of the second year.

In his remarks, PCA CEO Mark Kowlzan stated that the acquisition supports the company's expansion plan. The company's infrastructure is well-complemented by the acquired containerboard mills, which will supply containerboard to support the growth of its corrugated goods. He went on to say that PCA anticipates continuing to provide large cash flows and value for its investors.

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