Greif is planning to use the proceeds from the deal, which is expected to be completed by the end of March, for debt repayment
GRP has agreed to acquire 50% stake in Greif’s Flexible Packaging joint venture. (Credit: Gerd Altmann from Pixabay)
Gulf Refined Packaging (GRP) has agreed to acquire a 50% stake in Greif’s Flexible Packaging joint venture (FPS) for a total cash consideration of $123m.
Greif is planning to use the proceeds from the deal for debt repayment.
With around 250 production, warehouse and office locations across the world, Greif offers industrial packaging products and services.
The company’s product portfolio consists of flexible products, steel, plastic and fibre drums, intermediate bulk containers and reconditioned containers.
Greif also produces containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of speciality products.
In addition, the firm produces packaging accessories and delivers filling, packaging and other services for different industries.
Greif president and CEO Pete Watson said: “While we have worked closely with our joint venture partner, each partner held different views of the appropriate path forward for the FPS business.
“As a result, we entered into a process to determine a single owner and utilized our disciplined capital allocation framework that resulted in an agreement to sell our ownership stake to GRP for significant value.
“I would like to thank our FPS colleagues for their hard work over the last 11 years and for their continued commitment to the business during the transition ahead.”
Subject to certain conditions and post-closing adjustments, the deal is expected to be completed by the end of March this year.
In April last year, Graphic Packaging wrapped up the acquisition of Consumer Packaging Group (CPG) business from Greif for about $85m.