Cascades sells corrugating plant to Crown Paper

Cascades Inc. has entered into an agreement to sell its corrugated packaging plant in Richmond, British Columbia, to Crown Paper Group for more than $65 million.

Kingsey Falls, Quebec-based Cascades, whose more than 60 operating facilities in Canada and the United States include recycled paperboard mills, says the transaction is expected to be completed soon, subject to closing conditions and adjustments.

“Given its geographic position, the Richmond plant offered limited integration and synergy potential within Cascades’ operational network, but aligns with Crown’s current footprint, expanding its operations in the region,” Cascades says.

Crown Paper Group is part of Atlas Holdings, a Greenwich, Connecticut-based collection of more than 25 companies predominantly in the manufacturing and distribution sectors. Crown Paper’s operating units include Crown Packaging, Boxmaster and Port Townsend Paper Co., which operates a blended virgin fiber and recycled containerboard mill in Port Townsend, Washington.

Cascades says the sale is part of its commitment to optimize its operations and reduce its debt, referring to it as a mutually beneficial outcome for both companies.

“This transaction with Crown Paper Group supports the achievement of Cascades’ strategic objectives while preserving the prospects of the Richmond plant,” Cascades President and CEO Hugues Simon says. “It allows to monetize valuable real estate assets while not impacting materially the cash flow profile of our Packaging sector."

Crown has a long-established presence in British Columbia and nearly a century of operating the integrated containerboard mill in Port Townsend, and Cascades says the firm is a natural long-term fit for the Richmond plant.

“Acquiring the Richmond box plant is an important milestone in Crown’s continued expansion, furthering the integration of our mill and box operations to provide our customers with exceptional service and product offerings,” Crown Paper Group CEO Rob Kreizenbeck says. “We are excited to welcome the Richmond team to Crown very soon and look forward to building on the plant's strong legacy of service and craftmanship."