US manufacturer of 100 per cent recycled paperboard and converted paperboard products Caraustar Industries has sold its 50 per cent interest in Premier Boxboard to its joint venture partner Temple-Inland, for US$62M.
Michael J Keough, Caraustar president and CEO, states: "The company is focused on executing its plan to refinance its 7.375 per cent Senior Notes. Completing the sale of our interest in PBL is the first step in that plan and raises a portion of the funds necessary while mitigating exposure to the volatile housing market.
Paperboard production at PBL has been a mix of gypsum facing paper and medium. Caraustar will continue to produce gypsum facing paper at its Sweetwater mill, including higher margin speciality grades such as its SafeFace mould resistant facing paper.
