12:47 PM EDT, 07/01/2025 (MT Newswires) -- (Updates with the latest stock movement in the first paragraph and headline.)

Packaging Corporation of America's ( PKG ) shares were up about 8% in recent Tuesday trading after the company said it has agreed to purchase the containerboard business of Greif ( GEF ) for $1.8 billion in cash.

The transaction is expected to close by the end of PCA's Q3 and immediately accretive to earnings, the company said.

The containerboard business includes two mills with approximately 800,000 tons of production capacity and eight US sheet feeder and corrugated plants, the company said.

The business generated about $1.2 billion in sales for the 12 months ended April 30, the company said.

The deal is expected to generate pretax benefits of about $60 million within two years after closing, the company said.

Price: 203.48, Change: +15.03, Percent Change: +7.98