Cascades expands with US acquisition

Cascades Inc., Kingsey Falls, Quebec, a leader in the recovery and manufacturing of green packaging and tissue products, acquired the assets of Urban Forest Products, Brook Indiana, and Clarion Packaging, Clarion, Iowa. 

The two acquired manufacturing plants will allow the company to double its production capacity of ecological packaging manufactured in moulded pulp, according to a Cascades news release. The total cost of the transaction amounts to about $37.4 million.

Both plants manufacture moulded protective packaging that primarily serves the egg and quick-service restaurant industries. The two acquired facilities have a combined workforce of just over 150 employees. 

Also, Cascades acquired a majority interest in Falcon Packaging, Greenville, Ohio, which has 31 employees in Ohio, Iowa and Georgia. According to a Cascades news release, these three companies have consolidated sales that exceed $110 million annually. 

“These acquisitions give us the opportunity to improve Cascades’ position in the strategic fresh protein and food services packaging markets,” says Mario Plourde, Cascades president and CEO. “They are also in line with our objective to expand our moulded pulp activities, which produce a recycled, recyclable, compostable and biodegradable packaging product that offers highly interesting opportunities against a backdrop of expanding interest in the circular economy. The value of this transaction is in line with current Cascades trading multiple and will be accretive to net earnings.”