Cascades, Inc. Signs Definitive Agreement Towards Acquisition of Orchids Paper Assets

SEATTLE (Scrap Monster): Cascades, Inc. has entered into a definitive agreement for acquisition of substantially all of the assets of Orchids Paper Products Company. This follows the approval of the transaction by the U.S. Bankruptcy Court for the District of Delaware. On July 1^st, the company had announced winning bid at auction.

The payment of a cash consideration of $207 million will be financed using the company’s existing credit facilities. The transaction, subject to customary closing conditions, is expected to close either in August or September this year.

The assets of Orchid Paper Company, to be acquired by Cascades, are estimated to generate EBITDA of approximately $45 million per annum by beginning of 2021. 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.

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The acquired assets include the Barnwell , South Carolina and Pryor, Oklahoma facilities, certain equipment and Orchid Paper’s commercial agreements with Mexico-based Fabrica de Papel San Francisco , S.A. de C.V and its affiliates. Further, Cascades Inc. promised that it will invest in new technologies at the plants so as to expand the range of products manufactured by the facilities.

Commenting on the acquisition, Mario Plourde, President and CEO, Cascades commented that it is well aligned with its strategic plan. Also, it will boost the company’s efforts towards long-term growth of its tissue platform.