Caraustar Industries Inc. has completed its purchase of major paper recycling firm The Newark Group Inc.
The Austell, Ga.-based recycled paper products company agreed last July to buy Newark, which is based in Cranford, N.J., employs about 1,500 and operates more than 20 North American manufacturing plants, according to a news release.
Newark Group makes recycled paperboard, linerboard, industrial tubes, cores and other converted products, including book covers and packaging solutions.
“We are excited to add The Newark Group to our company,” said Michael Patton, Caraustar president and CEO. “The combination of these two companies offers a compelling platform for future growth and will make us more competitive in the end use customer segments we serve.”
Caraustar makes recycled paperboard and converted paperboard products and is a portfolio company of Miami-based H.I.G. Capital.
Financing for the transaction was provided by Credit Suisse Securities (USA) LLC, Jefferies LLC, Wells Fargo Capital Finance and Regions Business Capital.