A big deal on the global packaging market has now been finalised. Greif and Caraustar have become one entity.
US industrial packaging producer Greif has announced it has finalised the takeover of fellow company Caraustar on 11 February. The transaction price was put at $1.8bn.
With the acquisition, Greif is expanding its footprint in the USA significantly. Caraustar is an integrated recycled board and packaging manufacturer with sales of $1.4bn and 80 operating facilities, mostly in the USA and some in Canada.
The company is part of investment company H.I.G. Capital and is described as a market leader in the production of coated and uncoated recycled board with a variety of applications that include tube and cores as well as specialty products.
Greif is a specialist in industrial packaging. With the takeover, it will significantly expand its presence in the market for paper packaging. The company, which also has products based on other materials in its portfolio, said that its sales from paper packaging would account for approximately 50% of its total sales after conclusion of the deal, while the figure currently stood at 23%.