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H.I.G. Capital Completes Acquisition of Caraustar Industries

May 06, 2013, 08:00 AM
Filed Under: Manufacturing

H.I.G. Capital, a leading global private equity investment firm, announced that an affiliate completed the acquisition of Caraustar Industries, Inc., a provider of recycled paperboard and related products. Caraustar was majority owned by private investment funds managed by Wayzata Investment Partners LLC.

Financing for the transaction was provided by Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Jefferies LLC and Wells Fargo Capital Finance. Jefferies LLC was financial advisor to Caraustar. Credit Suisse Securities (USA) LLC was financial advisor to H.I.G. Capital.

In 2009, Wayzata led a group of bondholders in a pre-packaged chapter 11 process in which Wayzata-managed funds acquired a majority ownership stake in Caraustar. The Wayzata led restructuring significantly reduced Caraustar’s debt burden and dramatically improved Caraustar’s balance sheet. Since exiting bankruptcy, Caraustar has used its stronger balance sheet to drive operational improvement and to increase profitability.

"We are very excited about the Caraustar opportunity," added Tenno Tsai, a Principal of H.I.G. "Caraustar is a market leader with a blue chip customer base, broad geographic footprint and an efficient, high quality manufacturing base. We believe there are numerous market opportunities going forward and we look forward to supporting Mike and his team in achieving continued growth," he commented further.

Caraustar Industries, Inc. is one of North America’s largest integrated manufacturers of 100% recycled paperboard and converted paperboard products. The company is a socially responsible corporation, is committed to environmentally sound practices and is dedicated to providing customers with outstanding value through innovative products and services. Caraustar has developed its leadership position in the industry through diversification and integration from raw materials to finished products.

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