Temple-Inland buys JV interest in Premier Boxboard

-- Converting Magazine, 8/4/2008

Paperboard-packaging specialist Temple-Inland, Inc. buys Caraustar Industries' 50-percent interest in their joint venture Premier Boxboard LLC (PBL) for $62 million in cash and assumption of $25 million of debt.

PBL produces lightweight, gypsum facing paper and containerboard at a 308,000 tons/yr mill in Newport, IN. The lightweight, gypsum facing paper will serve the needs of both Temple-Inland's building products operations and external customers. Containerboard produced at the mill will be primarily used by Temple-Inland's corrugated-packaging operations.

“Completing the sale of our interest in PBL…raises a portion of the funds necessary to refinance the company's senior notes while mitigating exposure to the volatile housing market,” says Michael J. Keough, president/CEO of Caraustar.