, April 21 /PRNewswire-FirstCall/ -- Caraustar Industries, Inc.
(Nasdaq: CSAR) has entered into an agreement to sell the assets of Sprague
Paperboard, Inc. to Cascades Inc. (CAS-TSX). The assets to be acquired by
Cascades include Caraustar's coated recycled paperboard mill located in
Versailles, Connecticut for . In addition, under terms of
the agreement, Cascades will annually supply 30,000 short tons of coated
recycled boxboard (CRB) to Caraustar's folding carton plants. The transaction
is subject to approval from State of Connecticut environmental agencies and
regulators, which approval process is expected to be completed within a month.
Michael J. Keough, president and chief executive officer of Caraustar,
stated, "The sale of this facility is part of our previously announced
transformation plan, which included the exit of noncore businesses and
increased focus on the businesses which we are capable of growing and
achieving sustained profitability. Caraustar's folding carton converting
operations will continue to benefit from the state-of-the-art CRB produced at
Sprague Paperboard through its supply agreement with Cascades."
Caraustar, a recycled packaging company, is one of the world's largest
integrated manufacturers of converted recycled paperboard. 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, cores and
composite cans; folding cartons; gypsum facing paper and specialty paperboard
products. For additional information on Caraustar, please visit the company's
website at .
This press release includes "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. 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: uncertainties as to the timing or satisfaction of conditions to
close of the company's sale of Sprague Paperboard, Inc. and its ability to
sell other related facilities; the competitive environment in the paper
industry and competition, customer and vendor responses to the company's
proposed strategic transformation plan; and uncertainties regarding the cost,
availability or feasibility of expansion, technology, investment or
acquisition opportunities that the company may desire to pursue. Additional
risk factors relating to Caraustar that could cause actual results to differ
from those expressed or implied by the company's forward looking statements
are contained in Caraustar's most recent Forms 10-K and 10-Q and 8-K filed
with, or furnished to, the Securities and Exchange Commission. Caraustar
undertakes no obligation to update any forward-looking statements and is not
responsible for any changes made to this press release by wire or Internet
services.

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