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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 4, 1999
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CARAUSTAR INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
North Carolina 0-20646 58-1388387
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
3100 Washington Street
Austell, Georgia 30106
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(Address of Principal Executive Offices)
(Zip Code)
(770) 948-3101
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former name or address, if changed from last report)
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Item 5. Other Events.
Caraustar Industries, Inc. issued a press release on March 4, 1999 (a
copy of which is attached as Exhibit 99.1), the contents of which are
incorporated herein by reference.
Item 7. Exhibits.
The following exhibit is filed as part of this report.
Exhibit 99.1 -- Press release dated March 4, 1999
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: March 4, 1999
CARAUSTAR INDUSTRIES, INC.
By: /s/ H. Lee Thrash, III
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H. Lee Thrash, III
Vice President and
Chief Financial Officer
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Exhibit Index
Exhibit Exhibit No.
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Press release dated March 4, 1999 99.1
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CARAUSTAR INDUSTRIES, INC.
Diversified . Packaging . Solutions
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FOR IMMEDIATE RELEASE
March 4, 1999
CONTACT: H. Lee Thrash, III
Chief Financial Officer
(770) 948-3101
CARAUSTAR INDUSTRIES, INC. TO ACQUIRE
SPRAGUE BOXBOARD MILL FROM
INTERNATIONAL PAPER COMPANY
ATLANTA, Georgia - Caraustar Industries, Inc. (NASDAQ-NMS Symbol: CSAR) today
announced that it has entered into a definitive agreement with International
Paper Company (IP) (NYSE: IP) to acquire its recycled boxboard mill located in
Sprague, Connecticut. The completion of the transaction is subject to various
conditions, including expiration or early termination of the waiting period
under the Hart-Scott-Rodino Act. Closing is expected to occur on or before April
8, 1999.
The Sprague mill has a capacity of 210 thousand tons for the production of clay
coated recycled boxboard used in the manufacture of folding cartons. With the
addition of the Sprague mill, Caraustar would become the largest recycled
boxboard producer in the United States, with a total capacity of 1.4 million
tons and a market share of approximately 17.0 percent. Caraustar also would
become the third largest United States producer of clay coated recycled boxboard
with a capacity of 420 thousand tons and a market share of approximately 17.4
percent.
Edward G. Schmitt, vice president mills for Caraustar, commented, "The Sprague
mill has long been considered one of the premier quality, low-cost recycled
boxboard mills serving the folding carton market. The addition of Sprague to
Caraustar's mill system will significantly enhance Caraustar's ability to
service its folding carton customers and is a key building block in the ongoing
execution of our strategic growth plan."
"All of our employees are very excited about what this means for the Sprague
mill," said Sprague mill manager, Brian McDonald. "Our facility will be at the
core of Caraustar's business."
Caraustar Industries, Inc., a packaging company, is one of the largest and
lowest-cost manufacturers and converters of recycled paperboard and packaging
products. The company has maintained its industry low-cost status through
diversification and integration from raw materials to finished products.
Caraustar is the only major producer of recycled boxboard products that serves
all four of the principal markets: tubes, cores and cans; folding cartons;
Phone 770-948-3101 . P. O. Box 115 . Austell, GA 30168
3100 Washington Street . Austell, GA 30106
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Caraustar Industries, Inc.
March 4, 1999
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gypsum wallboard facing paper; and miscellaneous "other specialty" and converted
products. Caraustar currently has 89 operations located in the United States,
Mexico and the United Kingdom.
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. The words "expect," "will," "would" and similar
expressions may identify such forward-looking statements. These statements
involve risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in such forward-looking statements.
Among the key factors that could cause such results to vary include Caraustar's
ability to complete acquisitions and integrate the operations of acquired
businesses, fluctuations in raw material prices and the economy in general, the
degree and nature of competition, demand for Caraustar's products, changes in
governmental regulations and numerous other factors discussed in Caraustar's
filings with the Securities and Exchange Commission.
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