We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Greif, Inc. (GEF - Free Report) has closed the previously announced acquisition of Ipackchem Group SAS, a global leader in premium barrier and non-barrier jerrycans and small plastic containers. This strategic acquisition is set to unlock substantial new capabilities and market opportunities, and also fortify Greif's position as a leading provider of high-performance small plastic containers and jerrycans worldwide. This buyout is expected to immediately boost GEF’s EBITDA.
Based in Paris, France, Ipackchem has 13 operating facilities spread across eight countries and has around 1,400 employees. Ipackchem generated sales of approximately $235 million and adjusted EBITDA of approximately $57 million in the twelve months ended Sep 30, 2023. Ipackchem's financial results will be consolidated within Greif's Global Industrial Packaging segment.
Ipackchem’s exposure to secular growth markets in agriculture, specialty chemicals, flavor & fragrances, and pharmaceutical & medical diagnostics makes it a solid fit with Greif’s growth plans. Greif has an ongoing strategy of growing into margin-accretive, resin-based products with strong circularity characteristics serving multiple end markets. The company will also be able to leverage Ipackchem’s unique barrier technology, best-in-class facilities and strong technical and operational management. Grief has estimated synergies of $7 million within 18 months of planned ownership.
The deal was closed with cash totaling $538 million, with an additional $38 million allocated for a ticking fee to compensate Ipackchem’s owner SK Capital Partners for earnings accruing to Greif, alongside customary debt/cash adjustments and currency impact. The funding was secured through Greif's existing credit facility.
The company has been active on the acquisition front since last year. In October 2023, GEF acquired Reliance Products, a leading producer of high-performance barrier and conventional blow-molded jerrycans and small plastic containers in Canada. With this buyout, Greif added to its portfolio of barrier technologies.
In August 2023, GEF acquired 51% of the ownership interest in ColePak, the second-largest supplier of paper partitions in North America. This added a completely new product offering to the company’s paper-converting portfolio, and offered incremental integration benefits to its containerboard and uncoated recycled board mills. In April 2023, Greif increased its stake in Centurion Container from approximately 10% to 80%, enhancing its resin-based offering and the Intermediate Bulk Containers business in North America. The company’s M&A pipeline remains solid and it plans to continue to deploy capital toward value-accretive targets.
Price Performance
Greif’s shares have gained 8.4% in a year compared with the industry’s 7.7% growth.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 80% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 41% in the past year.
The Zacks Consensus Estimate for AptarGroup 2024 earnings is pegged at $5.19 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days and suggests year-over-year growth of 8.6%. The company has a trailing four-quarter average earnings surprise of 7.8%. ATR’s shares have gained 25% in the past year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Greif (GEF) Completes Ipackchem Acquisition, Boosts Portfolio
Greif, Inc. (GEF - Free Report) has closed the previously announced acquisition of Ipackchem Group SAS, a global leader in premium barrier and non-barrier jerrycans and small plastic containers. This strategic acquisition is set to unlock substantial new capabilities and market opportunities, and also fortify Greif's position as a leading provider of high-performance small plastic containers and jerrycans worldwide. This buyout is expected to immediately boost GEF’s EBITDA.
Based in Paris, France, Ipackchem has 13 operating facilities spread across eight countries and has around 1,400 employees. Ipackchem generated sales of approximately $235 million and adjusted EBITDA of approximately $57 million in the twelve months ended Sep 30, 2023. Ipackchem's financial results will be consolidated within Greif's Global Industrial Packaging segment.
Ipackchem’s exposure to secular growth markets in agriculture, specialty chemicals, flavor & fragrances, and pharmaceutical & medical diagnostics makes it a solid fit with Greif’s growth plans. Greif has an ongoing strategy of growing into margin-accretive, resin-based products with strong circularity characteristics serving multiple end markets. The company will also be able to leverage Ipackchem’s unique barrier technology, best-in-class facilities and strong technical and operational management. Grief has estimated synergies of $7 million within 18 months of planned ownership.
The deal was closed with cash totaling $538 million, with an additional $38 million allocated for a ticking fee to compensate Ipackchem’s owner SK Capital Partners for earnings accruing to Greif, alongside customary debt/cash adjustments and currency impact. The funding was secured through Greif's existing credit facility.
The company has been active on the acquisition front since last year. In October 2023, GEF acquired Reliance Products, a leading producer of high-performance barrier and conventional blow-molded jerrycans and small plastic containers in Canada. With this buyout, Greif added to its portfolio of barrier technologies.
In August 2023, GEF acquired 51% of the ownership interest in ColePak, the second-largest supplier of paper partitions in North America. This added a completely new product offering to the company’s paper-converting portfolio, and offered incremental integration benefits to its containerboard and uncoated recycled board mills. In April 2023, Greif increased its stake in Centurion Container from approximately 10% to 80%, enhancing its resin-based offering and the Intermediate Bulk Containers business in North America. The company’s M&A pipeline remains solid and it plans to continue to deploy capital toward value-accretive targets.
Price Performance
Greif’s shares have gained 8.4% in a year compared with the industry’s 7.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Greif currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc. (CDRE - Free Report) , Applied Industrial Technologies (AIT - Free Report) and AptarGroup (ATR - Free Report) . CDRE currently sports a Zacks Rank #1 (Strong Buy), and AIT and PRLB carry a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 80% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 41% in the past year.
The Zacks Consensus Estimate for AptarGroup 2024 earnings is pegged at $5.19 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days and suggests year-over-year growth of 8.6%. The company has a trailing four-quarter average earnings surprise of 7.8%. ATR’s shares have gained 25% in the past year.