Industrial packaging products and services firm Greif has closed the acquisition of Caraustar Industries from global private equity investment firm HIG Capital for a total consideration of $1.8bn in a cash transaction.

The completion follows the announcement of approval from US Federal Trade Commission for the deal earlier this month.

Greif announced the deal through a definitive agreement in December with an affiliate of HIG Capital.

HIG and Caraustar purchased the packaging company in May 2013, doubling revenue and profitability through various strategic initiatives.

Commenting on the sale, HIG managing director Tenno Tsai said: “As a leader in the recycled paperboard and packaging solutions market, Caraustar’s ability to deliver a broad product portfolio to a national customer base via a low-cost, vertically integrated manufacturing network provides a value proposition unmatched in the industry.

“Caraustar is a terrific organisation with exceptional leadership and it has been a pleasure supporting Mike Patton and his team to transform the business, more than doubling Caraustar’s size over our hold period. As a result, Caraustar has delivered an outstanding return for HIG and its investors.”

“Caraustar has delivered an outstanding return for HIG and its investors.”

Caraustar produces uncoated recycled paperboard (URB) and coated recycled paperboard (CRB) for a range of applications such as tubes and cores, folding cartons, gypsum-facing paper, as well as speciality paperboard products. The company is based in Austell, Georgia.

The company has four business lines, including Recycling Services, Mill Group, Industrial Products Group, and Consumer Packaging. It currently operates more than 80 facilities across the US.

Rothschild, Credit Suisse Securities (USA), and Moelis acted as financial advisors while Ropes & Gray and Axinn Veltrop Harkrider served as legal counsellers to Caraustar.