Cascades increases its ownership interest in New York containerboard mill

Cascades Inc., a packaging and recycling solutions provider based in Kingsey Falls, Quebec, has announced that it is exercising its option to purchase the interest of the Caisse de dépôt et placement du Québec (CDPQ), an institutional investor based in Quebec, in Greenpac Holding LLC, a lightweight containerboard mill based in Niagara Falls, New York.

CDPQ owns a 20.2 percent interest in the Greenpac mill. The expected purchase price is about $93 million and is expected to close Jan. 3, 2020, Cascades reports in a news release on the purchase. Cascades now owns a 66.1 percent interest in Greenpac, which will increase to 86.3 percent after the transaction closes. Greenpac is a joint venture originally created in partnership with CDPQ, Jamestown Container Cos. and Containerboard Partners.

“This transaction is an important part of Cascades' strategic plan and will improve our available cash flow,” says Mario Plourde, president and CEO. “This decision is another step in a series of actions that we have carried out over the past few years to improve our position in an increasingly competitive market.”

Greenpac manufactures a lightweight linerboard made with 100-percent-recycled fibers on a machine with an annual production capacity of 540,000 tons per year. The mill employs 152 people.