Greif to Sell Containerboard Business, Boost Debt-Reduction Efforts

Greif, Inc. GEF announced that it inked a definitive agreement with Packaging Corporation of America PKG to divest its Containerboard business, including its CorrChoice sheet feeder network. This move will help the company's debt reduction efforts and unlock value-creation opportunities.Greif’s Strategic Deal With Packaging CorpGEF’s containerboard business includes two containerboard mills. These have a production capacity of 800,000 tons. The business also includes eight sheet feeder and corrugated plants located across the United States.Greif generated revenues of $1.2 billion and EBITDA of $212 million from its containerboard business in the fiscal year ended on April 30, 2025.This sale aligns with Greif’s Build to Last strategy, creating immediate value for shareholders. It marks a significant step towards portfolio optimization, capital efficiency, and accelerated growth. With this strategic move, GEF strengthens its position as a packaging leader. Improved capital efficiency will help the company reduce the need for recurring capital expenditure, allowing it to pay down debt and unlock value-creation opportunities.Packaging Corp will pay Greif $1.8 billion in cash. The transaction is expected to close by the end of fiscal 2025, subject to regulatory approvals.GEF’s Q2 PerformanceGreif reported adjusted earnings per share of $1.19 for second-quarter fiscal 2025, beating the Zacks Consensus Estimate of $1.08. The bottom line improved 43.4% year over year.Revenues moved up 1.1% year over year to $1.39 billion. However, the top line missed the Zacks Consensus Estimate of $1.43 billion.Greif’s Stock Price PerformanceThe company’s shares have gained 26.4% in a year against the industry’s 3.2% decline. Image Source: Zacks Investment Research GEF’s Zacks Rank & Other Stocks to ConsiderGreif currently flaunts a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks from the Industrial Products sector are Life360, Inc. LIF and Federal Signal Corporation FSS. LIF sports a Zacks Rank #1 and FSS has a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.Life360 delivered an average trailing four-quarter earnings surprise of 415%. The Zacks Consensus Estimate for LIF’s 2025 earnings is pinned at 24 cents per share, which indicates a year-over-year upsurge of 500%. Life360’s shares have skyrocketed 117.3% in a year.Federal Signal delivered an average trailing four-quarter earnings surprise of 6.4%. The Zacks Consensus Estimate for FSS’s 2025 earnings is pinned at $3.83 per share, which indicates year-over-year growth of 14.6%. The company’s shares have gained 18.9% in a year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Packaging Corporation of America (PKG): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report Federal Signal Corporation (FSS): Free Stock Analysis Report Life360, Inc. (LIF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks