PACKAGING CORP OF AMERICA (PKG) Company Report

Completed acquisition of Greif’s containerboard business for $1.8 billion in cash, effective August 31, 2025.
Transaction adds two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants across the U.S..
Financed with $300 million of cash on hand and $1.5 billion of new borrowings under term loan facilities and a senior note offering; term loans fully drawn on September 2, 2025.

Sep 2, 2025, 8:30 PM

Packaging Corp of America prices $500 m senior notes to fund Greif containerboard acquisition

PKG

Debt Issuance

M&A

Packaging Corporation of America priced an offering of $500 million aggregate principal amount of 5.200% Senior Notes due 2035 under an underwriting agreement with BofA Securities, Mizuho Securities and U.S. Bancorp Investments as leads.
Net proceeds are expected to be approximately $495.1 million, which, together with term-loan drawings and cash on hand, will finance the acquisition of Greif, Inc.’s containerboard business and related transaction fees.
The Notes will be unsecured senior obligations, mature on August 15, 2035, and bear interest at 5.200% per annum, payable semi-annually on February 15 and August 15, beginning February 15, 2026.
Redemption features include a make-whole option prior to May 15, 2035, par redemption thereafter, a mandatory redemption at 101% if the Greif deal is not completed by June 30, 2026, and a 101% repurchase right upon a change of control triggering event.

Aug 15, 2025, 12:00 AM

Packaging Corp of America enters new credit agreements to fund Greif Acquisition

PKG

Debt Issuance

M&A

On July 31, 2025, Packaging Corp of America entered into a $600 million revolving credit facility and a $500 million three-year unsecured term loan under its Commercial Credit Agreement, replacing its prior credit agreement.
The Company also executed a $500 million seven-year unsecured term loan under a Farm Credit Agreement, with interest at Term SOFR Rate or Base Rate plus margins tied to its public debt rating.
Proceeds from the term loan facilities are designated to complete the Greif Acquisition, with full draws expected at closing; the revolving facility is available for working capital and general corporate purposes.
The agreements include customary affirmative and negative covenants, a maximum leverage ratio, and allow voluntary prepayments without premium or penalty.

Aug 6, 2025, 12:00 AM

Packaging Corp of America reports Q2 2025 results

PKG

Earnings

M&A

Guidance Update

Reported Q2 net income of $242 M ($2.67/share) and adjusted net income of $224 M ($2.48/share) versus $199 M ($2.20/share) in Q2 2024; net sales rose to $2.2 B from $2.1 B in Q2 2024.
Packaging segment EBITDA (ex. special items) increased to $453 M on $2.0 B sales (22.6% margin) versus $400 M on $1.9 B sales (21.0% margin) in the prior‐year quarter.
Announced agreement to acquire Greif’s containerboard business (≈800 k tons capacity) for $1.8 B, expected to close by end of Q3, providing growth platform and capital avoidance (e.g., Dallas facility expansion).
Issued Q3 guidance of $2.80 EPS (ex. special items), assuming higher corrugated shipments, flat packaging pricing, lower maintenance outage costs, and slightly lower fiber costs.
Generated $300 M cash from operations and $130 M free cash flow; deployed $170 M in capex, $112 M in dividends, ending quarter with $956 M cash and $1.3 B revolver liquidity.

Jul 24, 2025, 5:30 PM

PCA to acquire Greif’s containerboard business for $1.8 billion

PKG

M&A

Packaging Corporation of America entered into a definitive Purchase and Sale Agreement to acquire Greif’s containerboard business for $1.8 billion in cash.
The closing is expected in the third quarter of 2025, subject to Hart-Scott-Rodino antitrust clearance and other customary conditions, with an outside date of June 30, 2026 (extendable).
The agreement includes customary representations, warranties and covenants, a termination fee for antitrust failure, indemnification provisions, and a transition services agreement.

Jul 3, 2025, 12:00 AM

Packaging Corp of America to purchase Greif containerboard business

PKG

M&A

Debt Issuance

Packaging Corporation of America (PCA) has entered into a definitive agreement to acquire Greif, Inc.’s containerboard business for $1.8 billion in cash, with closing expected by the end of PCA’s third quarter 2025.
The acquisition comprises two containerboard mills (totaling ~800,000 tons of capacity) and eight sheet feeder and corrugated plants, which generated $1.2 billion in sales and $212 million of EBITDA for the 12 months ended April 30, 2025.
PCA expects $60 million of pre-tax synergies within two years—half in year one—driven by operational efficiencies, increased integration, grade optimization, and lower transportation costs.
Financing includes $1.5 billion of new debt and cash on hand, resulting in a pro forma net debt/EBITDA leverage ratio of 1.7x post-close (versus 0.9x currently).

Jul 1, 2025, 12:00 AM

Packaging Corp of America Reports Strong Q1 2025 Results with Updated Guidance

PKG

Earnings

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Financial Performance: Q1 2025 net income reached $204 million with diluted EPS of $2.26 (or $2.31 excluding special items) on $2.1 billion in net sales
Segment Highlights: The Packaging segment improved margins to 21% and delivered operating income of $278.1 million driven by higher prices, volume, and mix, while the Paper segment posted a 26% EBITDA despite lower volume amid economic uncertainty
Cash Generation: The company recorded record cash from operations of $339 million and free cash flow of $191 million, reflecting effective cost management
Operational Achievements: Record containerboard production and maintained targeted inventory levels supported the quarter’s performance
New Capacity: A state-of-the-art box plant in Glendale, Arizona, launched ahead of schedule and below budget, adding nearly 2 billion square feet of capacity
Guidance Update: Management provided Q2 EPS guidance of $2.41 (excluding special items) amid ongoing global trade uncertainty and rising operating costs

Apr 23, 2025, 1:01 PM

Earnings Transcripts

Quarterly earnings call transcripts for PACKAGING CORP OF AMERICA.