Greif announced Wednesday it has entered into an agreement to sell the timberlands it owns across the southeastern United States to Molpus Woodlands Group for $462 million. The divestiture includes more than 173,000 acres of timberlands managed by wholly owned subsidiary Soterra.
The deal is expected to close sometime around the end of Greif’s fiscal year, which is Sept. 30. The company first disclosed its intention to sell these assets during a February earnings call. The move aligns with recent restructuring and optimization efforts.
“The sale of the Soterra timberlands aligns with our strategy to focus our portfolio on opportunities where Greif can be an industry leader,” said CEO Ole Rosgaard in a news release. “This transaction enhances our ability to invest in higher-margin, less cyclical markets, and positions Greif for further long-term success and value creation.”
Greif completed a reorganization late last year in which it shifted from geography-based operations to substrate-based segments, with an enhanced focus on polymer-based solutions. The company also introduced a plan in December 2024 to reduce costs by $100 million by the end of FY 2027.
Greif announced in early July that it would sell its containerboard business to Packaging Corporation of America for $1.8 billion in cash. The transaction is expected to close by the end of September and “represents a pivotal step in our work to sharpen our portfolio, enhance our capital efficiency, and advance our growth priorities,” said Rosgaard in a July statement.
This year, the company also has announced multiple facility closures, including a containerboard and uncoated recycled paperboard mill in Fitchburg, Massachusetts; a non-integrated, uncoated recycled paperboard machine in Austell, Georgia; a coated and uncoated recycled paperboard mill in Los Angeles; and a facility in Merced, California, that manufactures industrial steel drums and small polymer containers. In total, approximately 255 jobs were cut in those closures.
Cash proceeds from the timberland sale will go toward debt reduction, which executives flagged in December as a near-term priority.
Acquirer Molpus calls itself a timberland investment and management group. It is based in Mississippi and has a strong presence in the Southeast, along with some assets in the Midwest, Northeast and Pacific Northwest.
“With our long history of creating value for similar properties in these areas, we believe this opportunity fits well within our long-term investment strategy and sustainable forest management approach,” Molpus CEO Terrell Winstead said in the news release.
