The combined company will have a significant presence in the South, Northeast, Midwest and West Coast.
Caraustar Industries Inc., based in Austell, Georgia, has entered into an agreement to acquire The Newark Group. The deal is subject to customary conditions and regulatory approvals.
Caraustar is a manufacturer of 100-percent-recycled paperboard and converted paperboard products. The company is owned by the private equity firm H.I.G. Capital, headquartered in Miami.
The Newark Group, headquartered in Cranford, New Jersey, manufactures paperboard, linerboard, tubes and cores and other packaging products from recycled fibers. The company also operates a network of recycling facilities throughout the United States that supplies Newark Group’s mills as well as other domestic and overseas mills. The Newark Group operates more than 20 manufacturing facilities in the United States and Canada.
Michael Patton, CEO of Caraustar, says, “The acquisition of The Newark Group is a major milestone in our growth journey. Bringing together the strengths of our respective companies will dramatically expand our manufacturing and distribution capabilities to better serve our growing customer base. We look forward to working with The Newark Group employees, partners and customers.”
Tenno Tsai, managing director at H.I.G. Capital, says, “The combination of these highly respected companies will significantly build upon our investment in the recycled paperboard industry. We are impressed with the capabilities of The Newark Group and look forward to supporting Mike (Patton) and his leadership team as they integrate the businesses.”
Caraustar serves the four principal recycled boxboard product end-use segments: tubes and cores; folding cartons; gypsum facing paper and specialty paperboard products. The company’s operations are primarily in the South, hough it does have a modest presence in the upper Midwest.
The Newark Group has a sizable presence in the northeastern U.S. as well as operations in the South, Midwest and West Coast.