Caraustar Industries signs agreement to acquire The Newark Group
Caraustar Industries, Inc. (caraustar.com), a portfolio company of H.I.G. Middle Market, the dedicated middle market investment affiliate of H.I.G. Capital (higcapital.com), has entered into an agreement to acquire The Newark Group, Inc. The acquisition is subject to customary closing conditions and required regulatory approvals.
Newark is a manufacturer of recycled paperboard, linerboard, industrial tubes, cores and other converted product including book covers and packaging solutions. Headquartered in Cranford, NJ, The Newark Group has approximately 1,500 employees and operates over 20 manufacturing facilities in the US and Canada.
"The acquisition of The Newark Group is a major milestone in our growth journey," says Michael Patton, chief executive officer 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 comments, "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."