Caraustar completes Smurfit-Stone acquisition

Related tags Caraustar industries Paperboard

Caraustar Industries has completed the purchase of the industrial
packaging operations of Smurfit-Stone.

Caraustar Industries has completed the purchase of the industrial packaging operations of Smurfit-Stone Container Corporation.

The acquired business operations included 17 tube and core manufacturing facilities, three fibre partition plants, and three uncoated recycled boxboard mill operations. The approximate purchase price of $79.8 million (€80.8m) will be funded by $38 million of borrowings under Caraustar's revolving credit facility, the assumption of $1.8 million of industrial revenue bond debt, $9.6 million in operating leases and $30.4 million in cash on hand.

Smurfit-Stone said that the sale of its industrial packaging operations is consistent with its strategy to focus on containerboard, corrugated containers and consumer packaging. The company's consumer packaging businesses offer a variety of products including folding cartons, multiwall and speciality bags, flexible packaging products, and labels.

Caraustar, a recycled packaging company, is one of the largest manufacturers and converters of recycled paperboard and recycled packaging products in the US. The company has developed its leadership position in the industry through diversification and integration from raw materials to finished products.

Caraustar is the only major packaging company that serves the four principal recycled paperboard product markets: tubes, cores and cans; folding carton and custom packaging; gypsum wallboard facing paper; and miscellaneous "other specialty" and converted products.

Related topics Processing & packaging

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