U.S. packaging producer Greif has announced it signed a deal to take over recycled paperboard and packaging maker Caraustar Industries from an affiliate of H.I.G. Capital.
The transaction is valued at some US$1.8 billion, and it is expected to be closed in the first quarter of 2019, Greif said in a statement.
“Caraustar offers an exceptional strategic and cultural fit for Greif,” Pete Watson, the president and chief executive officer, was quoted in the statement. “Its complementary paper packaging and recycled fiber operations will drive significant free cash flow growth, improve balance and profitability within the Greif portfolio and increase Greif’s exposure to U.S. industrial and consumer end markets.”