Greif Completes Acquisition of Caraustar Industries

12 February 2019

Greif, Inc., a global leader in industrial packaging products and services, announced today that it has completed its previously announced acquisition of Caraustar Industries, Inc.

"I am pleased that we have completed the acquisition of Caraustar Industries and I welcome our new colleagues to the Greif team," said Pete Watson, Greif's President and Chief Executive Officer. "The addition of Caraustar bolsters our leadership position and enhances our existing portfolio of packaging solutions. We look forward to delivering on the opportunities that the addition of Caraustar provides for our team, our customers and our shareholders."

Greif estimates that it will be able to achieve at least $45 million in cost synergies and performance improvements within the next 36 months through the integration of the former Caraustar operations into Greif's existing business. Greif also anticipates that the acquisition will enhance Greif's existing margins; be immediately accretive to earnings and free cash flow; and strengthen and balance Greif's existing portfolio. Greif believes that integration risk is low given Caraustar's operational adjacency to Greif and the strong cultural fit between the companies.

Caraustar's financial results will be reported within Greif's Paper Packaging and Services segment going forward. Greif's Fiscal 2019 guidance will be updated for the inclusion of Caraustar in conjunction with the release of the company's first quarter fiscal 2019 results.

Greif financed the $1,800.0 million all-cash acquisition from the proceeds of the issuance of $500.0 million of new senior unsecured notes and from refinancing its secured credit facilities and new term loans in the principal amount of $1,675.0 million. As part of the transaction, Greif will redeem its $250.0 million of 7.75 percent senior unsecured notes due August 2019. As a result of the new financing, Greif's overall weighted cash interest rate fell to approximately 4.90 percent.