Greif completes $462 million timberlands sale to Molpus Woodlands

Published 02/10/2025, 13:14
Greif completes $462 million timberlands sale to Molpus Woodlands

DELAWARE, Ohio - Greif, Inc. (NYSE:GEF, GEF.B), a $2.91 billion market cap company, has completed the sale of its timberlands business to Molpus Woodlands Group for approximately $462 million after adjustments, the company announced Thursday. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating.

The transaction, which was previously announced, follows Greif’s recent sale of its containerboard business. According to the company, the combined proceeds from these divestments are expected to reduce its leverage ratio to below 1.2x, strengthening its already solid balance sheet with a current debt-to-equity ratio of 1.34x.

"The closing of this sale reinforces the commitment of Greif to pursue the highest return on invested capital across our portfolio," said Ole Rosgaard, President and CEO of Greif, in a press release statement.

Perella Weinberg served as exclusive adviser to Greif during the transaction.

Greif, founded in 1877, describes itself as a global leader in performance packaging with operations in 40 countries. The company provides packaging solutions across multiple industries through its polymer, fiber, metal, and integrated solutions divisions.

The company did not disclose specific plans for the use of proceeds beyond strengthening its balance sheet ahead of fiscal 2026.

In other recent news, Greif Inc. reported its third-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.03, which surpassed the forecasted $0.9367. The company also reported revenue of $1.13 billion, exceeding the anticipated $998.44 million. In a strategic move, Greif completed the sale of its containerboard business to Packaging Corporation of America, a transaction aimed at providing immediate value to shareholders and enhancing capital efficiency. This sale is expected to help Greif achieve more consistent earnings and accelerate debt reduction. Truist Securities, however, lowered its price target for Greif to $71.00 from $72.00, maintaining a Hold rating due to mixed results. The industrial packaging company had reported fiscal third-quarter Class A operating earnings per share of $1.03, which fell short of Truist Securities’ estimate of $1.28 and the Street consensus of $1.09. These developments highlight the dynamic changes Greif is undergoing in its financial and operational strategies.

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