ColePak is expected to expand the Greif paper converting portfolio with a new product offering, which will enable the integration to the Greif mill system in the containerboard as well as URB grades
Greif buys majority stake in ColePak. (Credit: Alvina Suhardjo on Unsplash)
Packaging products and services provider Greif has announced the acquisition of a 51% stake in ColePak, a supplier of paper partitions in North America.
The all-cash transaction will be financed through the existing credit facility of Greif, which did not disclose the acquisition price.
Founded in 1987, the US-based ColePak has a location in Ohio from which it serves the glass container, pharmaceutical, automotive, and other packaging industries.
The company also operates through Fortress Packaging located in Napa Valley to serve the wine, glass, and beverage industry.
Greif president and CEO Ole Rosgaard said: “ColePak has done a phenomenal job of growing a thriving and financially successful business due to their strong values, relentless customer-service focus, and robust family culture.
“Those fundamental characteristics of their business mirror our approach at Greif, which is why this is such a compelling partnership.
“As a part of the Greif portfolio, we plan to share best practices from our multi-national perspective with ColePak to further elevate their opportunities, while also advancing our Build to Last priorities.”
ColePak is expected to expand the Greif paper converting portfolio with a new product offering. This will enable the integration to the Greif mill system in the containerboard as well as URB grades.
Furthermore, the ColePak margin profile is said to promptly add value to the Greif portfolio.
The deal is further backed by similar company values, a growth-oriented business profile, and exposure to stable and expanding food and beverage end markets.
ColePak second-generation owners Jason and Ryan Cole said: “The Cole family is excited to begin this journey with Greif. Greif has been a supplier to ColePak for over 35 years, and the Cole family has developed great trust and admiration for Greif, which has culminated in this partnership.
“Their noncompromising commitment to their customers, their employees, and quality of product align well with the ColePak values, and we look forward to the continued success and the growth this partnership will provide into the future.”
Greif is engaged in the production of industrial packaging products like steel, plastic, and fibre drums, intermediate bulk containers, and others.
In November last year, the company announced the acquisition of Lee Container, a high-performance barrier and blow moulded containers producer, for $300m.