Industrial packaging products and services provider Greif has completed the acquisition of recycled paperboard and packaging solutions firm Caraustar Industries from H.I.G. Capital for $1.8bn.
The deal, which was first announced in December 2018, secured the last regulatory approval earlier this month in the US. H.I.G, along with Caraustar management, acquired Caraustar in May 2013.
Greif is expecting to achieve up to $45m in cost synergies and performance improvements within the next three years through incorporating former Caraustar operations into its existing business.
Greif also said it anticipates that the acquired business will optimize its existing margins, in addition to strengthening and balancing its existing portfolio.
Greif president and CEO Pete Watson said: “The addition of Caraustar bolsters our leadership position and enhances our existing portfolio of packaging solutions. We look forward to delivering on the opportunities that the addition of Caraustar provides for our team, our customers and our shareholders.”
Based in Austell of Georgia, Caraustar is specialized in the production of uncoated recycled paperboard (URB) and coated recycled paperboard (CRB), which can be used in various applications such as tubes and cores and diverse mix of specialty products.
The company’s businesses include recycling services, mill group, industrial products group, and consumer packaging.
The recycling services and mill group produces coated and uncoated paperboard and specialty paperboard products, while industrial products group produces tubes and cores, construction products, protective packaging, adhesives.
Caraustar’s consumer packaging unit produces folding cartons and set-up boxes, as well as offers packaging services to the customers.
H.I.G. Capital managing director Tenno Tsai said: “As a leader in the recycled paperboard and packaging solutions market, Caraustar’s ability to deliver a broad product portfolio to a national customer base via a low cost, vertically integrated manufacturing network provides a value proposition unmatched in the industry.”
With Operations in over 40 countries, Greif manufactures various products such as steel, plastic and fiber drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard and packaging accessories.