During a recent earnings call, Greif announced it has acquired 51 percent of the ownership interest in ColePak, LLC. The acquisition is an all-cash transaction funded through Greif’s existing credit facility.
ColePak is the second-largest supplier of paper partitions in North America and has a compelling future growth path in that unique product niche. As partners, ColePak adds a completely new product offering to the Greif paper converting portfolio. Furthermore, it provides integration to the Greif mill system in both containerboard and URB grades.
Additionally, the ColePak margin profile is immediately accretive to the Greif portfolio. A shared set of company values, a growth-oriented business profile, and exposure to stable and growing food and beverage end markets all further highlight the strong strategic fit. The acquisition closely reflects the growth priorities we outlined at our Investor Day in 2022.
“ColePak has done a phenomenal job of growing a thriving and financially successful business due to their strong values, relentless customer-service focus, and robust family culture,” said Ole Rosgaard, President and Chief Executive Officer of Greif. “Those fundamental characteristics of their business mirror our approach at Greif, which is why this is such a compelling partnership. As a part of the Greif portfolio, we plan to share best practices from our multi-national perspective with ColePak to further elevate their opportunities, while also advancing our Build to Last priorities. We are excited to learn from the expertise of our new colleagues, and welcome them to the Greif family.”
Jason and Ryan Cole, second-generation owners of ColePak, commented: “The Cole family is excited to begin this journey with Greif. Greif has been a supplier to ColePak for over 35 years, and the Cole family has developed great trust and admiration for Greif, which has culminated in this partnership. Their noncompromising commitment to their customers, their employees, and quality of product align well with the ColePak values, and we look forward to the continued success and the growth this partnership will provide into the future.”
ColePak financial results will be reported within the Greif Paper Packaging & Services segment as part of our Q4 2023 results. The expected 2023 contribution will be included in the guidance provided at our upcoming Q3 2023 earnings conference call on 31 August, 2023.
