Cascades Wins Bid to Acquire Certain Assets of Orchid Paper Products

SEATTLE (Scrap Monster): Cascades, Inc. has won the auction to acquire certain of the assets of Orchid Paper Products. The transaction is for a cash consideration of $207 million and is subject to approval by the U.S. Bankruptcy Court for the District of Delaware, the hearing of which is scheduled to be held July 1^st.

The transaction will cover substantially all of the company’s assets, including 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.

With the acquisition, Cascades plans to expand its geographical footprints in order to better serve its customers. Further, it will accelerate the modernization efforts and substantially reduce the subcontracting and transportation costs.