Greif completes acquisition of Caraustar Industries

Posted February 12, 2019
Greif, Inc. has completed the acquisition of Caraustar Industries, Inc. Greif estimates that it will be able to achieve at least $45 million in cost synergies and performance improvements within the next 36 months through the integration of the former Caraustar operations into Greif's existing business.

Greif also anticipates that the acquisition will enhance Greif's existing margins; be immediately accretive to earnings and free cash flow; and strengthen and balance Greif's existing portfolio. Greif believes that integration risk is low given Caraustar's operational adjacency to Greif and the strong cultural fit between the companies.

Greif financed the $1,800 million all-cash acquisition from the proceeds of the issuance of $500 million of new senior unsecured notes and from refinancing its secured credit facilities and new term loans in the principal amount of $1,675 million. As part of the transaction, Greif will to redeem its $250 million of 7.75% senior unsecured notes due August 2019. As a result of the new financing, Greif's overall weighted cash interest rate fell to approximately 4.90%.

Greif is a global leader in industrial packaging products and services.

Caraustar Industries, Inc. is a leader in the manufacturing of high-quality recycled materials and paper products.



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