Greif Divests Containerboard Business For $1.8 Billion To Slash Debt
Greif Inc. Divestiture: Greif Inc. has agreed to sell its Containerboard business to Packaging Corporation of America for $1.8 billion, which includes two mills and several plants, with the deal expected to close by the end of fiscal 2025.
Financial Implications: The sale is projected to improve Greif's financial position by reducing leverage and generating significant annual savings, while PCA plans to finance the acquisition primarily through new debt.
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Stock Sale Announcement: Thomas A. Hassfurther intends to sell 26,450 shares of Packaging Corp of America (PKG.US) on February 13, with a market value of approximately $6.53 million.
Reduction in Shareholding: Hassfurther has reduced his shareholding in Packaging Corp by 12,129 shares since February 5, 2026, with a total value of around $2.8 million.
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- Packaging Corp's Weak Results: Packaging Corp of America (NYSE:PKG) reported fourth-quarter results that fell short of expectations, projecting first-quarter GAAP EPS of $2.20, below the market estimate of $2.26, leading to a 2.1% drop in shares to $218.99 in after-hours trading, indicating investor concerns about its future outlook.
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- Earnings Miss: Packaging Corporation's Q4 2025 Non-GAAP EPS of $2.32 fell short by $0.09, indicating pressure on profitability that could undermine investor confidence.
- Revenue Growth Weakness: Despite a 9.8% year-over-year revenue increase to $2.36 billion, the figure missed expectations by $80 million, reflecting soft market demand and intensified competition.
- Annual Performance Overview: The full-year net income for 2025 was $774 million, or $8.58 per share, while excluding special items, net income was $888 million, or $9.84 per share, highlighting earnings volatility influenced by special items.
- Stock Price Reaction: Following the earnings report, shares fell 1.62% in after-hours trading, indicating a negative market reaction to the results and prompting investors to reassess the company's future growth potential.
- Financial Performance: In Q4 2025, Packaging Corporation reported a net income of $102 million, or $1.13 per share, despite a $1.32 decline from Q4 2024, indicating resilience in profitability amidst challenges.
- Sales Growth: The company achieved net sales of $2.4 billion in Q4 2025, a 14.3% increase from $2.1 billion in Q4 2024, reflecting sustained demand and market share growth in the packaging sector.
- Impact of Special Items: Excluding special items, diluted EPS was $2.32, down $0.15 year-over-year, primarily due to lower production and sales volumes along with rising operating costs, highlighting the cost pressures faced by the company.
- Future Outlook: The company anticipates Q1 2026 earnings of $2.20 per share, facing seasonal slowdowns and rising costs, yet remains optimistic about increased daily production and price improvements in its packaging operations.






