In a powerful move set to reshape the U.S. packaging landscape, Packaging Corporation of America (PCA) has inked a $1.8 billion all-cash agreement to acquire the containerboard division of Greif Inc., both companies revealed on Tuesday. Legal guidance for the deal comes from top firms Mayer Brown LLP and A&O Shearman, while financial firepower is provided by BofA Securities and Goldman Sachs.

The acquisition pushes PCA—already the third-largest containerboard producer in North America—deeper into an essential market that underpins everything from your morning cereal box to industrial shipping containers.

What’s in the Box: Assets and Ambitions

The soon-to-be-acquired Greif assets include two containerboard mills and eight corrugated and sheet feeder plants across the United States. This segment generated a whopping $1.2 billion in sales over the 12 months ending April 30, painting a picture of a high-value, high-impact acquisition.

For PCA, this isn’t just about scale—it’s a chess move. “This acquisition furthers PCA's profitable growth strategy,” said CEO Mark Kowlzan, noting that the new mills “nicely complement PCA's system” and will help fuel its corrugated products growth.

Synergy Without Splurge

According to PCA’s projections, the company expects $60 million in cost savings within two years of closing, fueled by “operational expertise” rather than heavy capital outlay. The firm plans to finance the deal with cash on hand and $1.5 billion in new debt, a confident stride into future returns.

The deal is slated to close by the end of PCA’s third quarter, pending regulatory and customary approvals.

Greif’s Strategic Retreat: Sharpening the Spear

For Ohio-based Greif, this sale is no retreat—it’s a redirection. CEO Ole Rosgaard called the move “a pivotal step” in refining the company’s portfolio. The proceeds, he said, will go toward debt repayment and strategic growth investments that promise “margin expansion and cash-flow generation.”

“This sale is fully aligned with our build-to-last strategy and unlocks immediate value for our shareholders,” Rosgaard added.

Advisors Behind the Curtain

• Mayer Brown LLP, representing PCA, was led by partner Paul Crimmins.

• A&O Shearman, advising Greif, fielded partner Lara Aryani and counsel Stephen Besen.

• Goldman Sachs served as Greif’s exclusive financial advisor.

• BofA Securities handled financing and advisory for PCA.