Morris, Manning & Martin partner Sandy Smith along with three colleagues advised Caraustar Industries Inc. on the sale of its 50 percent stake in Premier Boxboard LLC to Te
mple-Inland Inc., Smith said.
Caraustar sold the asset for $62 million and said it will use the proceeds to pay off debt. Caraustar formed the Premier Boxboard joint venture with Temple-Inland in 1999 to manufacture gypsum wallboard facing paper, a product used in the construction industry. Caraustar contributed $50 million to the joint venture at its founding. Premier Boxboard operates a gypsum mill in Newport, Indiana.
Caraustar’s sale of its interest in Premier Boxboard comes as part of the Austell-based company’s attempt to whittle down its assets to pay down debt. Caraustar in recent years has already sold its interest in another joint venture with Temple-Inland, called Standard Gypsum, as well as a corrugated box plant, a coated recycled paperboard mill and other assets. In July, Caraustar closed a paperboard mill in Chattanooga, Tenn.
Morris Manning’s Smith worked with Wilma E. Beaty, general counsel of Caraustar, on the Premier Boxboard deal. Morris Manning partner Bernard Coleman and associates Travis Townsend and Natasha Bell also worked on the transaction. Temple-Inland, of Austin, Texas, leaned on in-house counsel.