Caraustar Industries, Inc. completes sale of its Sprague coated recycled paperboard mill for $14.5 million

Jul 20, 2006. /Lesprom Network/. Caraustar Industries, Inc. announced on July 19 that it completed the sale of the assets of Sprague Paperboard, Inc., located in Versailles, CT, to Cascades Inc. The coated recycled paperboard mill was sold for $14.5 million. In conjunction with the sale, Caraustar executed a long-term supply agreement with Cascades to supply coated recycled boxboard (CRB) to Caraustar's folding carton plants. Michael J. Keough, president and chief executive officer of Caraustar, stated, "The completion of this transaction marks another achievement for Caraustar in moving ahead with its previously announced plans to focus on businesses in which we have greater strengths and opportunities to grow. This includes expanding our leadership position in the production of lightweight gypsum facing paper, continuing to develop innovative products such as our recently announced weather resistant Kolumn Form(TM) and working closely with our folding carton and specialty product customers to meet their value-added product needs." Caraustar, a recycled packaging company, is one of the world's largest integrated manufacturers of converted recycled paperboard and is dedicated to providing customers with outstanding value through innovative products and services. Caraustar has developed its leadership position in the industry through diversification and integration from raw materials to finished products. Caraustar serves the four principal recycled boxboard product end- use markets: tubes, cores and composite cans; folding cartons; gypsum facing paper and miscellaneous other specialty paperboard products.