Greif Completes Acquisition of Ipackchem
March 26 2024 - 3:05PM
Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial
packaging products and services, announced today that it has
completed its previously announced acquisition of Ipackchem Group
SAS ("Ipackchem").
"We are thrilled to welcome an exceptional 1,400 Ipackchem
colleagues to Greif," said Ole Rosgaard, President and Chief
Executive Officer of Greif. "Adding Ipackchem to the Greif
portfolio is another key step forward in executing our Build to
Last strategy and helps unlock significant new capabilities and
market opportunities to further grow as a world leader in
high-performance small plastic containers and jerrycans. Our teams
have been planning our integration strategy over the past several
months, which we will begin implementing immediately post-closing
to drive incremental benefits, support future growth, and capture
our targeted $7 million of synergies. I would like to extend my
deep gratitude to every member of the Greif and Ipackchem team for
their unparalleled dedication and excellent collaboration in
planning post acquisition integration.”
The cash funded at closing consisted of the previously announced
transaction value of $538 million, plus $38 million for a ticking
fee that compensates the seller for earnings that inure to Greif,
other customary debt/cash adjustment items, and FX impact. The
payment was funded through the Company's existing credit facility.
The acquisition is expected to be immediately accretive to EBITDA
margins. Ipackchem financial results will be reported within the
Greif Global Industrial Packaging segment. Financial expectations
for the FY24 ownership period of Ipackchem will be included in the
guidance provided in the Company’s second quarter 2024 earnings
release.
About Greif, Inc.
Greif is a global leader in industrial packaging products and
services and is pursuing its vision: be the best performing
customer service company in the world. The Company produces steel,
plastic and fibre drums, intermediate bulk containers,
reconditioned containers, jerrycans and other small plastics,
containerboard, uncoated recycled paperboard, coated recycled
paperboard, tubes and cores and a diverse mix of specialty
products. The Company also manufactures packaging accessories and
provides filling, packaging and other services for a wide range of
industries. In addition, Greif manages timber properties in the
southeastern United States. The Company is strategically positioned
in over 35 countries to serve global as well as regional customers.
Additional information is on the Company's website at
www.greif.com.
About Ipackchem
During its 35 years in the marketplace, Ipackchem has become an
international leader in the design and manufacturing of innovative,
high-performance rigid plastic barrier packaging products
(containers, bottles, jerrycans) with uncompromising quality and
service. Ipackchem takes pride in providing sustainable, secure
& safe UN-certified packaging solutions technology for the
transport of life enhancing chemicals.
As a Platinum EcoVadis company, Ipackchem participates in
plastics circularity by producing barrier packaging that is 100%
recyclable and can contain up to 50% post-consumer recycled
polymer. Utilizing its world-class, high-efficiency manufacturing
plants and AIMF technology across five continents, Ipackchem is
committed to be the responsible solution for dangerous goods
transportation not only for the crop protection chemical market,
but also for the pharmaceutical, animal health and flavor &
fragrances industries.
Concerning Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
with respect to Greif's plans to acquire Ipackchem and other
statements about future expectations, prospects, estimates and
other matters that are dependent upon future events or
developments. These forward-looking statements may be identified by
words such as "expect," "anticipate," "intend," "plan," "believe,"
"will," "should," "could," "would," "project," "continue,"
"likely," and similar expressions, and include statements
reflecting future results, trends or guidance and statements of
outlook. All forward-looking statements are based on assumptions,
expectations and other information currently available to
management. All forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those forecasted, projected or anticipated, whether
expressed or implied. These risks and uncertainties include: the
ability to retain the acquired businesses' customers and employees,
the ability to successfully integrate the acquired businesses into
Greif's operations, and the ability to achieve the expected
synergies as well as accretion in margins, earnings or cash flow;
competitive pressures in Greif's various lines of business; the
risk of non-renewal or a default under one or more key customer or
supplier arrangements or changes to the terms of or level of
purchases under those arrangements; uncertainties with respect
to U.S. tax or trade laws; the effects of any
investigation or action by any regulatory authority; and changes in
foreign currency rates and the cost of commodities. Greif is
subject to additional risks and uncertainties described in its Form
10-K, Form 10-Q and Form 8-K reports and exhibits to those reports.
This release reflects management's views as of March 26, 2024.
Except to the extent required by applicable law, Greif undertakes
no obligation to update or revise any forward-looking
statement.
Investor Relations contact
informationMatthew Leahy | Vice President Corporate
Development & Investor Relations | Greif, Inc.
1+ 740-549-6158
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