Greif acquired Caraustar Industries, Inc. for $1,834.9 million (net of cash; ~$1.8B enterprise value), a transaction completed in February 2019, structured as all cash.
Caraustar Industries, Inc. operates in Paper Packaging & Services, is based in North America, had revenue of about ~$220M LTM run-rate EBITDA. Greif acquired Caraustar Industries, Inc., a vertically integrated leader in coated and uncoated recycled paperboard, from an affiliate of H.I.G. Capital. Caraustar's products serve industrial applications (tubes and cores, construction products, protective packaging, adhesives) and consumer packaging (folding cartons, set-up boxes). The purchase price, net of cash acquired, was $1,834.9 million (an enterprise value of roughly $1.8 billion, about 8.2x LTM run-rate EBITDA of ~$220 million). It was Greif's largest acquisition and substantially expanded its paper franchise.
Significantly strengthens and balances Greif's portfolio and expands its paper franchise by acquiring a vertically integrated leader in recycled paperboard, with at least $45 million of identified annual run-rate cost synergies.
Vertically integrated recycled paperboard leader, immediately accretive to margins/EPS/free cash flow, strong deleveraging profile. at least $45M annual run-rate cost synergies (synergized EBITDA ~$265M) Paper Packaging & Services
Caraustar offers an exceptional strategic and cultural fit for Greif. Its complementary paperboard operations significantly enhance Greif's scale and scope in the industrial packaging space.Pete Watson, President & CEO, Greif, Inc.
Greif is a well-known market leader with a strong manufacturing base. Our customers will benefit from Greif's customer service focus and broad product offering and our employees will join a culture with a strong legacy for service and quality.Mike Patton, President & CEO, Caraustar Industries
Advisory firms were not disclosed for this transaction.