Caraustar Industries, Inc., a recycled packaging company, has announced that it intends to exit the coated recycled boxboard (CRB) and the specialty contract packaging (SPD) businesses.
The CRB business consists of three mills located in Versailles, CT, Rittman, OH and Tama, IA. The specialty contract packaging business includes six facilities located in Birmingham, AL; Robersonville, NC, Bucyrus, OH, Strasburg, OH, Clifton, NJ and Pine Brook, NJ. Additional information regarding the company’s announcement to exit the CRB and SPD businesses is available on Form 8−K.
Also, at the end of the fourth quarter, 2005, the company completed the sale of the Hunt Valley corrugated packaging business to Green Bay Packaging, Inc. and acquired, in a like−kind tax exchange, Sonoco’s folding carton facility in Charlotte, NC. These tactical transactions are net cash flow positive, says a press release.
Michael J. Keough, president and chief executive officer of Caraustar, said, “Caraustar’s management team has been working diligently on a comprehensive strategic review of all of our businesses. Effective December 30, 2005, we have decided to exit the CRB and SPD businesses, and plan to sell them to strategic buyers. These developments are part of a broader strategic transformation plan.”
For more information, contact Ronald J. Domanico, senior vice-president and chief financial officer at (770) 948-3101.