By P&PC Staff
By P&PC Staff
December 20, 2018 – Greif, a supplier of industrial packaging products, will acquire Caraustar Industries, a recycled paperboard and packaging solutions company, for US $1.8 billion.
Caraustar prouduces uncoated recycled paperboard and coated recycled paperboard, with a variety of applications that include tubes and cores and a diverse mix of specialty products.
Based in Austell, Georgia, Caraustar’s footprint includes over 80 operating facilities throughout the United States. For the last twelve months ended September 30, 2018, Caraustar generated sales of $1.4 billion and EBITDA of $174 million. Based on trailing 12-month actual volume, adjusted for current market conditions as of September 30, 2018, the run-rate EBITDA is $220 million.
“Caraustar offers an exceptional strategic and cultural fit for Greif,” says Pete Watson, Greif’s president and CEO. “Its complementary paper packaging and recycled fibre operations will drive significant free cash flow growth, improve balance and profitability within the Greif portfolio.”
“We are excited about today’s announcement and what it means for Caraustar’s customers and employees,” says Mike Patton, Caraustar president and chief executive officer.
The transaction is expected to close during the first quarter oF 2019.