Packaging Corporation of America (PCA) has announced the acquisition of the containerboard operations of Greif, Inc. in a $1.8 billion cash transaction, consolidating its position as one of North America’s most formidable packaging manufacturers.
The deal, subject to customary closing conditions and regulatory approvals, is expected to be finalized by the end of PCA’s third fiscal quarter. With this acquisition, PCA aims to enhance its capabilities across paper mills, corrugated manufacturing, and feed sheet plants, while unlocking significant synergies and operational efficiencies.
Greif’s divested containerboard business comprises two mills with a combined annual capacity of approximately 800,000 tons and eight downstream converting plants across the United States. For the 12 months ending April 30, 2025, the business generated roughly $1.2 billion in revenue and $212 million in EBITDA.
PCA, already the third-largest producer of paperboard in North America, will finance the transaction through $1.5 billion in new debt and existing cash reserves. Following the transaction, PCA’s pro forma leverage ratio (net debt to EBITDA) will stand at 1.7X.
The acquisition price implies a multiple of 8.5 times EBITDA, but this figure drops to 6.6 times when including $60 million in projected synergy benefits. These are expected to be fully realized within two years and will be derived from increased operational efficiency, better integration of processing grades, and reduced logistics costs. Approximately half of these savings are projected to materialize within the first year post-closing.
“This acquisition advances PCA’s profitable growth strategy,” said Mark Kowlzan, Chief Executive Officer of PCA. “The paper mills complement PCA’s system and will provide paperboard to support PCA’s continued growth in corrugated products. We expect to realize significant synergies with minimal capital investment through our operating expertise and will identify even more opportunities within the combined system for future high-return investments to grow with our corrugated and sheet-feed customers.”
PCA Chairman Tom Hassfurther echoed the strategic rationale for the acquisition, highlighting both operational and cultural alignment. “We have great respect for Greif and are very pleased to have reached an agreement to acquire this business,” he stated. “The Greif people have developed deep and lasting relationships with their customers, whom we look forward to serving with Greif’s well-capitalized facilities. It is a very strong culture of safety, innovation, growth and dedication to customer needs.”
With this move, PCA strengthens its integrated platform and underscores a commitment to long-term value creation through scale, system optimization, and expanded service capabilities across North America.
