Cascades finalizes deal to sell its North American boxboard facilities

MONTREAL (Scrap Monster): Cascades Inc., the leading manufacturer of green packaging and tissue paper products has signed a deal with Graphic Packaging Holding Company towards sale of its North American boxboard facilities. The deal whose value is estimated at around $44.9 million is expected to cover Cascade’s five facilities in the region.

The sale transaction includes mills and facilities at the following locations-East Angus and Jonquière, Quebec, Mississauga and Cobourg, Ontario and Winnipeg, Manitoba. These five plants together employ approximately 670 workers. According to Cascades, the transaction is part of the company’s efforts to focus its efforts on strategic sectors and reduce the debt load. It further clarified that the transaction will not affect the European boxboard operations.

The sale transaction is expected to complete by end 2015/Q1.

The East Angus mill produces recycled coated boxboard which is used in production of folding cartons. Acquired by Cascades in 1984, the Jonquière facility produces three-ply coated boxboard from virgin and recycled fiber. The Winnipeg mill, acquired by the company in 2001, manufactures folding cartons. The Mississauga mill specializes in production of high quality graphic packaging whereas the Cobourg plant manufactures high-quality flexographic boxboard containers.

Graphic Packaging Holding Company (GPHC) is a provider of packaging solutions for a variety of products to food, beverage and other consumer products companies. The Company is also a producer of folding cartons and coated unbleached kraft paperboard, coated-recycled board and multi-wall bags. The Company has extensive presence in four geographic areas- the United States/Canada, Central/South America, Europe and Asia Pacific.