The forest products company Cascades Inc., Kingsey Falls, Quebec, has reached an agreement to sell its North American boxboard manufacturing and converting assets to Graphic Packaging Holding Co., Marietta, Georgia, for $44.9 million.
The Cascade assets to be sold are:
- a mill in East Angus, Quebec, that manufactures recycled coated boxboard for the production of folding cartons;
- a three-ply coated boxboard mill in Jonquière, Quebec, that can use either recycled fiber or virgin pulp;
- a plant in Winnipeg, Manitoba, that manufactures folding cartons;
- a plant in Mississauga, Ontario, that manufactures high-quality graphic packaging; and
- a plant in Cobourg, Ontario, that manufactures flexographic boxboard containers.
"Today, Cascades is announcing an important decision that once again signals its commitment to refocusing its activities in the strategic sectors in which it excels,” says Mario Plourde, Cascades president and CEO. “This transaction follows in the wake of a number of other actions taken during the course of the year, with a view to reducing our debt load and focusing our investments in certain core packaging sectors, as well as in the tissue paper and recovery sectors. It is important to take note that today's announcement does not affect our European boxboard operations.”
David Scheible, Graphic Packaging chairman, president and CEO, says, "The acquisition of Cascades' Norampac paperboard assets enhances our position in North American folding cartons and enables us to extend our customer reach in Canada.
“The transaction is a continuation of our acquisition strategy to grow integrated folding carton converting volumes in key geographies and end markets. These assets will broaden our customer base and allow us to offer our current customers a wider range of products.”
The acquisition is subject to standard closing conditions and regulatory review and is expected to close in the first quarter of 2015.
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