Last week Sonoco acquired the fiber containers and industrial plastic carriers assets of Caraustar Industries. Terms of the transaction were not disclosed. The acquisition is expected to be modestly accretive in the first full year. The operations are anticipated to generate approximately $50 million in annualized sales.
"The addition of Caraustar's fiber containers and plastics operations is a good strategic fit with Sonoco's global rigid paper and plastics businesses," notes Harris DeLoach Jr., Sonoco's chairman, president and ceo.
The acquisition, whose proceeds Caraustar will use to reduce debt, includes six U.S. manufacturing facilities that employ a total of approximately 260 workers. The fiber container operations are located in Covington, Ga., Stevens Point, Wis., and Orrville and St. Paris, Ohio. The plastics operations are in New Smyrna Beach, Fla., and Union, S.C.
"The sale of these assets reflects our objective to exit noncore businesses," says Michael J. Keough, Caraustar's president and ceo. "The transaction brings us closer to the completion of our transformation plan and our commitment to focus on growing our core businesses and achieving sustained profitable growth."
Caraustar will continue to serve the four principal recycled boxboard product end use markets: tubes and cores; folding cartons; gypsum facing paper, and miscellaneous specialty paperboard products.
Posted by, Packaging Post
Monday, October 29, 2007
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