Daily News: May 6, 2013

Credit Suisse, Others Finance Caraustar Acquisition

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

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

Austell, GA-based Caraustar is one of North America’s largest integrated manufacturers and converters of 100% recycled paperboard and converted paperboard products. Caraustar serves end-use markets in tube and core, folding carton, gypsum facing paper and specialty paperboard products.

Mike Patton, CEO of Caraustar, commented, “We believe this is an exciting time in our industry, and I am pleased to have H.I.G.’s support to help us achieve our growth plan. We look forward to working with H.I.G. to build upon our reputation as a customer-oriented market leader.”

“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.”