Greif to Divest 50% Stake in Flexible Packaging JV

SEATTLE (Scrap Monster): Greif, Inc. announced that it has entered into a definitive agreement to divest its 50% share in the Flexible Packaging joint venture. The stake sale to Gulf Refined Packaging (GRP) was for a total cash consideration of $123 million. The company will use the proceeds of the transaction towards repayment of debts.

According to the company press release, the transaction is expected to close by 31^st March this year. The divestiture will make the company adjust its fiscal 2022 guidance. The transaction is subject to certain conditions and post-closing adjustments.

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Commenting on the transaction, Pete Watson, President and Chief Executive Officer, Greif, Inc. said that each partner had held different views of the appropriate path forward for the FPS business. Consequently, the company entered into a process to determine a single owner and utilized our disciplined capital allocation framework that resulted in an agreement to sell its ownership stake to GRP for significant value. Furthermore, he thanked its FPS colleagues for their hard work over the last 11 years and for their continued commitment to the business during the transition ahead.

Earlier in April 2020, Greif, Inc. had divested its consumer packaging group business to Graphic Packaging for cash proceeds of $85 million.