Greif Inc. has agreed to sell its consumer packaging group business for $85 million in cash to Atlanta-headquartered Graphic Packaging Holding Co. The Delaware, Ohio company expects to use the proceeds for debt repayment.

“The sale of CPG allows us to de-lever our balance sheet and optimize capital allocation plans,” Greif President and CEO Pete Watson said, in a statement. “By divesting these assets, we can refocus our business on our core industrial franchise and our stated strategic growth priorities in intermediate bulk container production and reconditioning and containerboard integration.”

Greif’s CPG business consists of seven converting facilities that manufacture folding cartons for consumer packaged goods businesses. The companies expect to complete the transaction by March 31, 2020.

Greif expects no material impact to its Fiscal 2020 outlook or Fiscal 2022 financial commitments from this divestiture and reaffirms its expectation of at least $70 million synergies over 36 months from the closing of the Caraustar acquisition.

Greif, which provides industrial packaging products and services, is strategically positioned in over 40 countries to serve global as well as regional customers.

Goldman Sachs & Co. LLC served as financial adviser to Greif for this transaction. Allen & Overy LLP served as Greif’s legal adviser.