Packaging Corporation of America will take over two containerboard mills and eight sheet feeder and corrugated plants from Greif to grow its containerboard products business in North America.
US paper and packaging group Packaging Corporation of America has entered into a definitive agreement to take over the containerboard business of Greif Inc for a purchase price of $1.8bn in cash. The transaction is subject to certain customary conditions and regulatory approvals and is expected to close by the end of September 2025 which corresponds to the end of PCA’s third quarter.
PCA plans to finance the transaction with $1.5bn of new debt and cash on hand, the group announced.
The Greif containerboard business consists of two containerboard mills with an annual production capacity of approximately 725,000 t (800,000 sh.t) and eight sheet feeder and corrugated plants across the USA. According to PCA, the business generated approximately $1.2bn in sales and had an EBITDA of $212m for the 12 months ended 30 April 2025.
Packaging Corporation of America is considered the third largest producer of containerboard products in North America. The company operates eight containerboard mills and 86 corrugated products plants and related facilities. In 2024, the company's Packaging segment produced 27.3 billion m² of containerboard, mostly primary fibre-based linerboard and corrugating medium and delivered a total of 6.2 billion m² of corrugated products in the same period, PCA said.
The Thomson Reuters news agency quotes an expert from the US bond analysis company Gimme Credit as saying that PCA's total capacity for containerboard will increase to 5.4 million t (6 million sh.t) following the takeover of Greif's Containerboard business.
The acquisition of Greif is expected to further grow the group's containerboard products business in North America while generating pre-tax benefits of approximately $60m in synergies. The synergies are projected to come from "improved operational and production capabilities and efficiencies at the mills, increased integration, mill grade optimization and lower transportation costs, and are expected to be fully realized within two years after closing," PCA explained.
PCA also boasts a strong position among leading producers of woodfree uncoated paper in the US. Over the past three years, however, the company has converted two fine paper machines at its Jackson, Alabama mill to containerboard production reducing its WFU production capacity. Currently PCA's Paper business, represented by the subsidiary Boise Paper, runs only one paper mill with an annual capacity of approximately 450,000 t (500,000 sh.t).
This article was updated on 9 July 2025.
