H.I.G. Capital Completes the Sale of Caraustar Industries for $1.8 Billion

NEW YORK–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/CRB?src=hash” target=”_blank”gt;#CRBlt;/agt;–H.I.G. Capital (“H.I.G.”), a leading global private equity investment
firm with $30 billion of equity capital under management, is pleased to
announce the completion of the sale of its portfolio company Caraustar
Industries, Inc. (“Caraustar” or the “Company”) to Greif, Inc. (NYSE:
GEF, GEF.B) for $1.8 billion.

Headquartered in Austell, GA, Caraustar is a market leader in the
production of uncoated recycled paperboard (URB) and coated recycled
paperboard (CRB), with a variety of applications that include tubes and
cores and a diverse mix of specialty products. Additionally, Caraustar
is also one of the largest collectors and processors of recovered fiber
in the United States. The Company services its diversified customer base
through a large network of facilities across North America.

H.I.G. acquired Caraustar in May 2013 in partnership with Caraustar
management, and has since more than doubled revenue and profitability
through organic investment and both transformative and tuck-in
acquisitions.

Tenno Tsai, Managing Director of H.I.G., said: “As a leader in the
recycled paperboard and packaging solutions market, Caraustar’s ability
to deliver a broad product portfolio to a national customer base via a
low cost, vertically integrated manufacturing network provides a value
proposition unmatched in the industry. Caraustar is a terrific
organization with exceptional leadership, and it has been a pleasure
supporting Mike Patton and his team to transform the business – more
than doubling Caraustar’s size over our hold period. As a result,
Caraustar has delivered an outstanding return for H.I.G. and its
investors.”

Rahul Vinnakota, Managing Director of H.I.G., further commented,
“Partnering with a respected global organization like Greif represents
an exciting next step for Caraustar’s customers, partners, and
employees, and we look forward to the Company’s continued success.”

Mike Patton, CEO of Caraustar, added: “H.I.G. has been thoughtful and
supportive of Caraustar since we partnered together in 2013. In addition
to supporting Caraustar’s aggressive M&A strategy, H.I.G. has provided
us the freedom and flexibility needed to grow the business organically
and served as a value-added thought partner to our senior leadership
team. Thanks to our affiliation with H.I.G., Caraustar is a much bigger
and a more diversified company today than it was in 2013 – our customer
base is broader and our relationships with them are deeper. We are
excited to continue this next chapter with Greif, whose platform and
resources will help us realize considerable opportunities ahead.”

Rothschild & Co was a financial advisor to Caraustar. Credit Suisse
Securities (USA) LLC and Moelis & Company were also financial advisors.
Ropes & Gray LLC and Axinn Veltrop Harkrider LLP represented Caraustar
as legal counsel.

About Caraustar

Caraustar Industries, Inc. is a leader in the manufacturing of
high-quality recycled materials and paper products. The company is a
socially responsible corporation, is committed to environmentally sound
practices and is dedicated to providing customers with outstanding value
through innovative products and services.

Caraustar’s four business lines include Recycling Services, Mill Group
(coated and uncoated paperboard and specialty paperboard products),
Industrial Products Group (tubes and cores, construction products,
protective packaging, adhesives) and Consumer Packaging (folding
cartons, set-up boxes, packaging services). Caraustar serves the four
principal recycled boxboard product end-use segments: tubes and cores;
folding cartons; gypsum facing paper; and specialty paperboard products.

About H.I.G. Capital

H.I.G. is a leading global private equity and alternative assets
investment firm with $30 billion of equity capital under management.*
Based in Miami, and with offices in New York, Boston, Chicago, Dallas,
Los Angeles, San Francisco, and Atlanta in the U.S., as well as
international affiliate offices in London, Hamburg, Madrid, Milan,
Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in
providing both debt and equity capital to small and mid-sized companies,
utilizing a flexible and operationally focused/ value-added approach:

1. H.I.G.’s equity funds invest in management buyouts, recapitalizations
and corporate carve-outs of both profitable as well as underperforming
manufacturing and service businesses.

2. H.I.G.’s debt funds invest in senior, unitranche and junior debt
financing to companies across the size spectrum, both on a primary
(direct origination) basis, as well as in the secondary markets. H.I.G.
is also a leading CLO manager, through its WhiteHorse family of
vehicles, and manages a publicly traded BDC, WhiteHorse Finance.

3. H.I.G.’s real estate funds invest in value-added properties, which
can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than
300 companies worldwide. The firm’s current portfolio includes more than
100 companies with combined sales in excess of $30 billion. For more
information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and
affiliates.

Contacts

Tenno Tsai
Managing Director
ttsai@higcapital.com

Rahul Vinnakota
Managing Director
rvinnakota@higcapital.com

P 212 506-0500
F 212-506-0559
www.higcapital.com

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