Wayzata Completes Sale of Caraustar Industries
May 1, 2013
Wayzata, MN – Wayzata Investment Partners LLC, a global private equity investment firm, announced today that it completed the sale of Caraustar Industries, Inc. a leading provider of recycled paperboard and related products. Caraustar was sold to an affiliate of H.I.G. Capital, LLC.
Headquartered in Austell, GA, Caraustar is one of North America’s largest integrated manufacturers and converters of 100% recycled paperboard and converted paperboard products. Caraustar serves end-use markets in tube and core, folding carton, gypsum facing paper and specialty paperboard products. 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.
In 2009, Wayzata led a group of bondholders in a pre-packaged chapter 11 process in which Wayzata-managed funds acquired a majority ownership stake in Caraustar. The Wayzata led restructuring significantly reduced Caraustar’s debt burden and dramatically improved Caraustar’s balance sheet. Since exiting bankruptcy, Caraustar has used its stronger balance sheet to drive operational improvement and to increase profitability.
Financing for the transaction was provided by Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Jefferies LLC and Wells Fargo Capital Finance. Jefferies LLC was financial advisor to Caraustar. Credit Suisse Securities (USA) LLC was financial advisor to H.I.G. Capital.
About Caraustar Industries
Caraustar Industries, Inc. is one of North America’s largest integrated manufacturers of 100% recycled paperboard and converted paperboard 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 has developed its leadership position in the industry through diversification and integration from raw materials to finished products. Caraustar serves the four principal recycled boxboard product end-use markets: tubes and cores; folding cartons; gypsum facing paper and specialty paperboard products. For additional information on Caraustar, please visit the company’s website at www.caraustar.com.
Based in Wayzata, Minnesota, Wayzata Investment Partners LLC is an SEC registered investment advisor to private investment funds with in excess of $7 billion in assets under management.
About H.I.G. Capital
H.I.G. is a global private equity investment firm based in Miami, Florida with more than $12 billion of equity capital under management