Greif Inc., a global industrial packaging solutions provider, has completed its divestiture of the Consumer Packaging Group business for $85 million in cash to Graphic Packaging Holding Co.

“Given our industrial focus, we were not the rightful owner of the CPG business,” Greif President and CEO Pete Watson said, in a statement. “The sale helps us de-lever our balance sheet, optimize our capital allocation plans and refocuses our business on our core industrial franchise and strategic growth priorities in intermediate bulk container production and reconditioning and containerboard integration.”

Proceeds from the sale of CPG will be used toward debt repayment. Greif expects no material impact to its Fiscal 2020 outlook or Fiscal 2022 financial commitments from this sale and reaffirms its expectation of at least $70 million synergies over 36 months from the closing of the Caraustar acquisition.

Greif also announced it is expanding its intermediate bulk container reconditioning network in North America through a minority investment stake in Centurion Container LLC.

“Greif is pleased to be taking a minority stake in Centurion and agreed to a clear path to full ownership,” said Ole Rosgaard, Greif Group President, Rigid Industrial Packaging & Services and Global Sustainability. “This deal and its partnership will enable us to provide our customers with an enhanced sustainable packaging solution along with the economies inherent in reusable packaging.”

The investment in Centurion Container advances Greif’s strategic priority to grow its IBC and IBC reconditioning businesses, while progressing the Delaware-headquartered company’s vision of becoming, in industrial packaging, the best performing customer service company in the world.