Greif, Inc. Completes the Sale of Flexible Packaging Joint Venture to Gulf Refined Packaging
Greif, Inc. (NYSE: GEF, GEF.B) has finalized the divestiture of its Flexible Packaging joint venture (FPS) for $123 million to Gulf Refined Packaging.
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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.
Details
News Market Reaction – GEF
The recorded move for GEF in the trading session of this news was -2.41%.
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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
"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
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SOURCE Greif, Inc.
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