On July 1, 2025, Packaging Corporation of America (PCA) announced it has signed a definitive agreement to acquire Greif Inc.’s containerboard business for $1.8 billion in cash.
The transaction is expected to close by the end of the third quarter, subject to customary conditions and regulatory approvals.
The deal includes two containerboard mills with a combined capacity of approximately 800,000 tons, along with eight sheet feeder and corrugated plants located across the United States. For the twelve-month period ending April 30, 2025, the business generated $1.2 billion in revenue and $212 million in EBITDA.
PCA anticipates $60 million in pre-tax synergies, driven by improved mill efficiency, better integration, optimized production grades, and reduced transportation costs. Half of these benefits are expected within the first year, with full realization by the end of the second year.
The purchase price represents 8.5 times the business’s LTM EBITDA, or 6.6 times including synergies, and is expected to be immediately accretive to earnings. The acquisition will be financed through $1.5 billion in new debt and existing cash. PCA’s pro forma net debt-to-EBITDA ratio will be approximately 1.7x following the transaction.
“This acquisition supports PCA’s profitable growth strategy. These mills fit well within our system and will supply containerboard to support our continued corrugated products growth,” said Mark Kowlzan, Chairman and CEO of PCA. “With minimal capital investment, we expect to generate strong synergies and identify future opportunities for high-return investments.”
Tom Hassfurther, PCA President, emphasized the cultural alignment and customer relationships developed by Greif: “We’re excited to welcome Greif’s people and assets. Their customer dedication, safety culture, and innovation mindset strongly align with ours. Together, we’ll enhance service and accelerate growth.”
BofA Securities served as financial advisor and committed financing partner for the deal.
PCA is the third-largest producer of containerboard and a leading producer of uncoated freesheet paper in North America, operating eight mills and 86 corrugated products facilities.
