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Cascades Inc. (TSX: CAS,OTC:CADNF) announces that it has reached an agreement to sell its Flexible Packaging plant activities to Five Star Holding ("Five Star") based in Houston, Texas . The $31 million transaction is effective immediately. Cascades' will retain ownership of the site real estate.
Located in Mississauga, Ontario , Flexible Packaging is Cascades' only plant that manufactures printed flexible plastic packaging and films. The sale reflects Cascades' commitment to continuously advance its operations, commercial approach and business model, in order to deliver the most value to its customers. The Company has found a buyer with both the expertise and a broader asset network to realize the plant's growth potential.
The Flexible Packaging operations employs 45 people, all of which will be retained by Five Star at closing. Cascades will work closely with Five Star to ensure a smooth ownership transition for employees, customers, and suppliers. The transaction includes a supply agreement between the two parties to ensure the continued production and supply of the flexible film that is used by Cascades' Tissue and Packaging sectors.
"Today's decision will allow us to reduce our debt and support the optimization of our operational platform to grow our strategic sectors. We are pleased to have found in Five Star a buyer committed to maintaining and developing the plant's activities," said Hugues Simon , President and Chief Executive Officer of Cascades. "We wish to thank our colleagues at Cascades Flexible Packaging for their contribution and look forward to continuing our collaboration with them as a one of their customers."
"We look forward to welcoming the team at Cascades Flexible Packaging to the Five Star family," said Alex Huis In 'T Veld, CEO of Five Star. "There was an immediate connection between our teams around manufacturing culture and shared focus on quality and safety. This acquisition will accelerate our growth in sustainability focused packaging for consumer, food and beverage markets in Canada and throughout North America ."
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 9,500 talents across a network of 65 operating facilities in North America . Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. Cascades' shares trade on the Toronto Stock Exchange under the ticker symbol CAS.
Five Star manufactures and designs a broad range of flexible packaging, printed films, and sustainability programs focused on Pet Care, Food & Beverage, and Consumer & Industrial markets. Headquartered in Houston, Texas , with additional manufacturing locations in Canada , Mexico and Honduras , Five Star is vertically integrated from extrusion and recycling through printing and converting, providing consumer packaged goods companies with products that enhance their brands, support their sustainability goals, and ensure their certainty of supply.
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SOURCE Cascades Inc.
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