Cascades, Inc. Concludes Acquisition of Orchid Paper Products

SEATTLE (Scrap Monster): Cascades, Inc. Announced that it has completed the previous ly announced acquisition of assets of Orchids Paper Products. Both the parties had entered into a definitive agreement during the month of July this year.

According to company press release, the acquired assets include two operations in Barnwell, South Carolina and Pryor, Oklahoma, in addition to certain other assets including supply and commercial agreements with Mexico-based Fabrica de Papel San Francisco , S.A. de C.V. and several of its affiliates. The above acquisition was for a cash consideration of US $207 million and was financed using the company’s existing credit facilities.

The acquired assets have an estimated parent roll capacity of up to 114,000 tons and a converting capacity of up to 114,500 tons. The amended agreement with Fabrica provides access to additional 20,000 tons of converting capacity for the Western U.S. market.

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Mario Plourde, President and CEO, Cascades welcomed Pryor and Barnwell employees to the Cascades family. The acquisition will accelerate the modernization of the company’s U.S. tissue platform and will further strengthen the geographical and operational positioning of its retail tissue segment, he noted. The transaction is expected to contribute approximately $45 million to annual EBITDA beginning 2021 onwards, Plourde added.

Also, Jean-David Tardif, President and COO, Cascades Tissue Group noted that the acquisition highlights its commitment to increase the ability to serve its customers and ensure long-term growth of its tissue segment.