ATLANTA, Dec. 21 /PRNewswire-FirstCall/ -- Caraustar Industries, Inc. (NASDAQ:CSAR), today announced that it has acquired Mayers Fibre Tube & Core, located in Winnipeg, Manitoba, Canada. Mayers is a manufacturer of construction tubes, waxed void tubes, paper cores, plastic test cyclinder molds, paper mailing tubes and metal end containers. The company services the U.S. and Canada with manufacturing representatives and a wide distribution network throughout the two countries. The terms of the transaction were not disclosed.
Michael J. Keough, president and chief executive officer of Caraustar, said, "This acquisition was a logical next step in furthering our previously announced concrete column form alliance with Mayers in the southeast United States. This acquisition is expected to approximately double our profitable column form business. We are pleased with the expansion of our Canadian footprint and to demonstrate the disciplined growth our stakeholders expect." Caraustar, a recycled packaging company, is one of the world's largest integrated manufacturers of converted recycled paperboard. 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 http://www.caraustar.com/.
This press release contains certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that represent the company's expectations, anticipations or beliefs about future events, operating results, financial condition, business plans and industry trends and their potential impact on the company's business and financial results. Statements that are not statements of historical fact, as well as statements including words such as "expect," "intend," "will," "believe," "estimate," "project," "budget," "forecast," "anticipate," "plan," "may," "would," "could," "should," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by such statements. Such risk factors include, among others: fluctuations in raw material prices and energy costs, increases in pension and insurance costs, downturns in industrial production, housing and construction and the consumption of durable and nondurable goods, the degree and nature of competition, the degree of market receptiveness to price increases and energy surcharges, changes in demand for the company's products, the degree of success achieved by the company's new product initiatives, uncertainties related to the company's ability to successfully complete its announced strategic transformation plan, future financing plans and needs, the impact on the company of its results of operation in recent years and the sufficiency of its financial resources to absorb the impact, changes in government regulations, the company's ability to service its substantial indebtedness, and unforeseen difficulties with the consolidation, integration of the company's accounting and control operations and IT systems. Additional relevant risk factors that could cause actual results to differ materially are discussed in the company's registration statements and its most recent reports on Form 10-K, 10-Q and 8-K, as amended, filed with or furnished to, the Securities Commission. These documents may be accessed through the web site of the Securities and Exchange Commission (http://www.sec.gov/). The company does not undertake any obligation to update any forward-looking statements and is not responsible for any changes made to this press release by wire or Internet services.
CONTACT: Ronald J. Domanico
Senior Vice President and
Chief Financial Officer
(770) 948-3101
DATASOURCE: Caraustar Industries, Inc.
CONTACT: Ronald J. Domanico, Senior Vice President and Chief Financial Officer of Caraustar Industries, Inc., +1-770-948-3101 Web site: http://www.caraustar.com/
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