Caraustar Industries Announces Closing of The Newark Group, Inc. Acquisition

On Feb 20, 2015

Caraustar Industries, Inc., a portfolio company of H.I.G. Middle Market, the dedicated middle market investment affiliate of H.I.G. Capital, completes the acquisition of The Newark Group, Inc.

The Newark Group is a manufacturer of recycled paperboard, linerboard, industrial tubes, cores and other converted products including book covers and packaging solutions. Headquartered in Cranford, The Newark Group has approximately 1,500 employees and operates over 20 manufacturing facilities across North America.

“We are excited to add The Newark Group to our company,” said Caraustar President and CEO Michael Patton. “The combination of these two companies offers a compelling platform for future growth and will make us more competitive in the end use customer segments we serve.”

“We are pleased to support Michael Patton and his team as they continue building a best-in-class, integrated manufacturer of recycled paperboard and related products,” added Tenno Tsai, a Managing Director of H.I.G. “We look forward to working with them to integrate Newark into Caraustar and continuing pursuit of our growth plan.”

Financing for the transaction was provided by Credit Suisse Securities (USA) LLC, Jefferies LLC, Wells Fargo Capital Finance, and Regions Business Capital.

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