Greif acquires stake in paperboard partition company

Delaware, Ohio-based Greif Inc. says it has acquired 51 percent of Urbana, Ohio-based ColePak LLC, a maker of paperboard partitions for packaging applications. Grief says it took part in an all-cash transaction funded through its existing credit facility.

Greif describes ColePak as the second largest supplier of paper partitions in North America and says the firm “has a compelling future growth path in that unique product niche.”

“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,” says Ole Rosgaard, president and CEO of Greif.

Continues Rosgaard, “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, are quoted by Greif as saying, “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.”

Greif, which operates a network of recovered fiber-fed mills, including those formerly operated by the former Caraustar, has about a dozen mill sites and more than 15 paper recycling collection and processing facilities.

ColePak “adds a completely new product offering to the Greif paper converting portfolio,” says Greif, with that product line providing “integration to the Greif mill system in both containerboard and uncoated recycled board (URB) grades.”

The newly acquired company serves a variety of customers from its facility in Ohio and focuses on the wine, glass and beverage industry through its Fortress Packaging LLC business unit, located in the Napa Valley of California. 

ColePak financial results will be reported within the Greif Paper Packaging & Services segment starting with Greif’s fiscal year 2023 fourth quarter earnings report, says the company.

Greif also has announced the results for its 2023 fiscal year third quarter, which ended this July 31. The company says its net income of $90.3 million was down by about 11.5 percent from the $102.1 million earned one year earlier. Fiscal year 2022 has been described by Greif as one of its most financially successful years.