US-based Caraustar Industries, Inc. has entered into an agreement to acquire the Newark Group.
The acquisition is subject to customary closing conditions and required regulatory approvals. The purchase price was not disclosed.
Newark is a manufacturer of recycled paper-board, containerboard, industrial tubes, book covers and packaging solutions and employs about 1,500 staff in the USA and Canada. The company disposes of 6 board mills with a combined annual capacity of over 450,000 tonnes as well as 14 converting and 11 recycling facilities.
Michael Patton, CEO of Caraustar, said the acquisition was a "milestone", which will dramatically expand Caraustar's manufacturing and distributions capacities.
Caraustar Industries is an integrated manufacturer of waste paper based paperboard and paperboard products and claims to be one of the largest fibre recyclers in the USA. The company produces recycled paperboard, board packaging, cores, gypsum facing paper and specialty paper-board products. Caraustar's 7 board mills offer a combined annual capacity of about 64.000 t of coated board and more than 350.000 t of uncoated board. Caraustar is a portfolio company of H.I.G. Capital.