Greif, Inc. has entered into a definitive agreement to acquire Caraustar Industries, Inc. from an affiliate of H.I.G. Capital, in a cash transaction valued at $1.8 billion. The transaction is expected to close during the 1Q of calendar year 2019, subject to customary closing conditions, including regulatory clearances, as the company says in the press release received by Lesprom Network.
For the last twelve months ended September 30, 2018 Caraustar generated sales of $1.4 billion and EBITDA of $174 million. Based on trailing twelve 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," said Greif's President and CEO, Pete Watson. "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 U.S. industrial and consumer end markets. Most importantly, Greif and Caraustar share the same dedication to providing industry-leading service to all customers."
Greif, Inc. 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.
