Greif welcomes Ipackchem after completing its announced acquisition of Ipackchem Group SAS ("Ipackchem") late last year.
"We are thrilled to welcome an exceptional 1,400 Ipackchem colleagues to Greif," said Ole Rosgaard, President and Chief Executive Officer of Greif. "Adding Ipackchem to the Greif portfolio is another key step forward in executing our Build to Last strategy and helps unlock significant new capabilities and market opportunities to further grow as a world leader in high-performance small plastic containers and jerrycans.
Our teams have been planning our integration strategy over the past several months, which we will begin implementing immediately post-closing to drive incremental benefits, support future growth, and capture our targeted $7 million of synergies. I would like to extend my deep gratitude to every member of the Greif and Ipackchem team for their unparalleled dedication and excellent collaboration in planning post-acquisition integration."
At the time of closing, the cash provided included the previously disclosed transaction amount of $538 million, an additional $38 million as a ticking fee to reimburse the seller for Greif's profits, standard adjustments for debt and cash, and the effect of foreign exchange rates.
The payment was funded through the Company's existing credit facility. The acquisition is expected to be immediately accretive to EBITDA margins. Ipackchem's financial results will be reported within the Greif Global Industrial Packaging segment. Financial expectations for the FY24 ownership period of Ipackchem will be included in the guidance provided in the Company's second-quarter 2024 earnings release.
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