Caraustar Industries to Acquire Halifax Paper Board

Caraustar Industries (Atlanta, GA) is acquiring Halifax Paper Board Co. The transaction is expected to close before the end of March. Halifax operates a specialty recycled paperboard mill in Roanoke Rapids, NC, and a specialty paperboard converting plant in Richmond, VA.

The paperboard mill has an annual capacity of 33,000 tons and is significantly integrated with the Richmond converting plant. These operations serve customers in the "other specialty" products market segment of the recycled boxboard industry.

Halifax had consolidated revenues of approximately $17 million for the year ended November 1, 1998. Edward Schmitt, VP, mills for Caraustar, said "the acquisition of Halifax will enhance Caraustar's market leader position in the production and conversion of specialty recycled paperboard."

Caraustar Industries Inc., a packaging company, is one of the largest and lowest-cost manufacturers and converters of recycled paperboard and packaging products. The company has maintained its industry low-cost status through diversification and integration from raw materials to finished products. It is the only major producer of recycled boxboard products that serves all four of the principal markets: tubes, cores and cans; folding cartons; gypsum wallboard facing paper; and miscellaneous other specialty and converted products.

Caraustar currently has 89 operations in the U.S., Mexico, and the UK.