Cascades sells corrugating plant to Crown Paper

Kingsey Falls, Quebec, Canada-based Cascades Inc. says it has entered into an agreement with to sell its corrugated packaging plant located in Richmond, British Columbia, Caanda to Crown Paper Group for more than $65 million.

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

Buyer Crown Paper Group is part of Atlas Holdings, a 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 fibers and recycled-content containerboard mill in Port Townsend, Washington.

Cascades calls the sale part of its commitment to optimize its operations and reduce its debt, referring to it as “a mutually beneficial outcome for both Cascades and Crown.”

“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,” states Cascades.

“This transaction with Crown Paper Group supports the achievement of Cascades’ strategic objectives while preserving the prospects of the Richmond plant,” says Hugues Simon, president and CEO of Cascades.

“It allows to monetize valuable real estate assets while not impacting materially the cash flow profile of our Packaging sector,” adds the executive.

“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,” says Rob Kreizenbeck, CEO of Crown Paper Group. “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.”

Cascades refers to Crown as having a long-established presence in British Columbia and nearly a century of operating the integrated containerboard mill in Port Townsend, calling the firm “a natural long-term fit for the Richmond plant.