Date ArticleType
1/7/2019 Member News
Caraustar Industries To Be Acquired by Greif, Inc. for $1.8 Billion in Cash

Caraustar Industries to be acquired by Greif, Inc. for $1.8 Billion in Cash

Greif, Inc., a global leader in industrial packaging products and services, will acquire Caraustar Industries, Inc., a leading recycled paperboard and packaging solutions company, from an affiliate of H.I.G. Capital, in a cash transaction valued at $1.8 billion. The transaction is expected to close during Q1 2019.

Caraustar is a market leader in the production of uncoated recycled paperboard (URB) and coated recycled paperboard (CRB), with a variety of applications that include tubes and cores and a diverse mix of specialty products. Based in Austell, GA, Caraustar's footprint includes over 80 operating facilities throughout the United States. For the last twelve months ended Sept. 30, 2018 Caraustar generated sales of $1.4 billion and EBITDA of $174 million.

"Caraustar offers an exceptional strategic and cultural fit for Greif," says Greif President and Chief Executive Officer Pete Watson. "Its complementary paper packaging and recycled fiber operations will drive significant free cash flow growth, improve balance and profitability within the Greif portfolio and increase Greif's exposure to US industrial and consumer end markets. Most importantly, Greif and Caraustar share the same dedication to providing industry-leading service to all customers. I am excited to welcome our new colleagues to the Greif family and look forward to working closely with them."

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