Caraustar Industries to Acquire Halifax Paper Board Co.

Caraustar Industries Inc. yesterday announced that it has entered into a letter of intent to acquire Halifax Paper Board Co. Inc. The transaction is expected to close before the end of March 1999.

Halifax operates a specialty recycled paperboard mill in Roanoke Rapids, NC, and a specialty paperboard converting plant in Richmond, VA. The paperboard mill has an annual capacity of 33 thousand tons and is significantly integrated with the Richmond, VA, converting plant. These operations serve customers in the "other specialty" products market segment of the recycled boxboard industry.

Halifax had consolidated revenues of approximately $17 million for the year ended Nov. 1, 1998. Caraustar Industries, one of the largest manufacturers and converters of recycled paperboard and packaging products, anticipates that the acquisition of Halifax will enhance its market leader position in the production and conversion of specialty recycled paperboard.