Industrial packaging products and services provider Greif has agreed to acquire recycled paperboard and packaging solutions firm Caraustar Industries from H.I.G. Capital in a deal valued at around $1.8bn.
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.
Caraustar president and CEO Mike Patton said: “Our customers will benefit from Greif’s customer service focus and broad product offering and our employees will join a culture with a strong legacy for service and quality.”
Based in Austell of Georgia, Caraustar is a vertically-integrated paperboard manufacturer that manages four primarily complementary businesses in North America.
The 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.
The firm is said to serve four principal recycled boxboard product end-use segments, including tubes and cores, folding cartons, gypsum facing paper and specialty paperboard products.
Caraustar has more than 80 operating facilities across the US. It reported revenues of around $1.4bn in the last fiscal year ended on 30 September.
Subject to customary closing conditions, the deal is expected to be completed in the first quarter of 2019.
Greif president and CEO Pete Watson said: 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.”
Greif produces various products such as steel, plastic and fiber drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard and packaging accessories.
With operations in more than 40 countries, the company also offers filling, packaging and other services for different industries.