Caraustar to Acquire The Newark Group

Caraustar Industries Inc., Austell, Ga., USA, a portfolio company of H.I.G. Middle Market, the dedicated middle market investment affiliate of H.I.G. Capital, Miami, Fla., has entered into an agreement to acquire The Newark Group Inc., Cranston, N.J. The acquisition is subject to customary closing conditions and required regulatory approvals. No details of the acquisition have yet been released. 

Newark is a producer of recycled paperboard, linerboard, industrial tubes, cores, and other converted product including book covers and packaging solutions. The Newark Group has approximately 1,500 employees and operates more than 20 manufacturing facilities in the U.S. and Canada.

"The acquisition of The Newark Group is a major milestone in our growth journey," said Michael Patton, CEO of Caraustar. "Bringing together the strengths of our respective companies will dramatically expand our manufacturing and distribution capabilities to better serve our growing customer base. We look forward to working with The Newark Group employees, partners, and customers."

Tenno Tsai, managing director at H.I.G. Capital noted that "the combination of these highly respected companies will significantly build upon our investment in the recycled paperboard industry. We are impressed with the capabilities of The Newark Group and look forward to supporting Mike and his leadership team as they integrate the businesses."

Caraustar serves the four principal recycled boxboard product end-use segments: tubes and cores, folding cartons, gypsum facing paper, and specialty paperboard products.