Greif Inc. Acquires Majority Stake of ColePak

ColePak is the second-largest supplier of paper partitions in North America.

Screen Shot 2023 09 01 At 10 57 39 Am

DELAWARE, Ohio โ€” Greif Inc., a global leader in industrial packaging products and services, announced it has acquired 51% of the ownership interest in ColePak LLC in 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, which 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, which closely reflects the growth priorities outlined at its 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 Greif President and CEO Ole Rosgaard. "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, added: "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."

The ColePak financial results will be reported within the Greif Paper Packaging & Services segment as part of its Q4 2023 results, and the expected 2023 contribution will be included in guidance provided at its upcoming Q3 2023 earnings conference call on August 31.

More in Mergers & Acquisitions