DELAWARE, Ohio (News release) -- Greif, Inc., a global leader in industrial packaging products and services, announced today that it has entered into a definitive agreement to divest its 50% share in the Flexible Packaging joint venture, or "FPS" to Gulf Refined Packaging (GRP) for a total cash consideration of $123 million, subject to certain conditions and post-closing adjustments. Greif expects to use the proceeds for debt repayment.

"While we have worked closely with our joint venture partner, each partner held different views of the appropriate path forward for the FPS business," said Pete Watson, Greif's President and Chief Executive Officer. "As a result, we entered into a process to determine a single owner and utilized our disciplined capital allocation framework that resulted in an agreement to sell our ownership stake to GRP for significant value. I would like to thank our FPS colleagues for their hard work over the last 11 years and for their continued commitment to the business during the transition ahead."

The transaction is expected to close by March 31, 2022 at which point Greif will adjust its Fiscal 2022 guidance for the divestiture.