H.I.G. Capital Acquires Caraustar Industries
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Miami, Fla., USA-based private equity firm H.I.G. Capital LLC this week acquired Caraustar Industries Inc., Austell, Ga., USA. Caraustar was majority owned by private investment funds managed by Wayzata Investment Partners, Wayzata, Minn.
Caraustar is one of North America's largest integrated manufacturers and converters of 100% recycled paperboard and converted paperboard products. It serves end-use markets in tube and core, folding carton, gypsum facing paper, and specialty paperboard products. The company services its diversified customer base through a large network of facilities across North America.
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.
Mike Patton, CEO of Caraustar, said that "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."
Tenno Tsai, a principal of H.I.G., noted that "we are very excited about the Caraustar opportunity. 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."
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