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Cascades Inc. (TSX: CAS,OTC:CADNF) announces that it has entered into an agreement with Crown Paper Group ("Crown") for the sale of its corrugated packaging plant located in Richmond, British Columbia, for a total value of $65.5 million, including the real estate assets and subject to working capital adjustments and the assumption of certain liabilities. The transaction is expected to be completed in the coming days, subject to customary closing conditions and adjustments.
In view of Cascades' commitment to optimize its operations and reduce its debt, the sale of the Richmond plant emerged as a mutually beneficial outcome for both Cascades and Crown. Given its geographic position, the Richmond plant offered limited integration and synergy potential within Cascades' operational network, but aligns with Crown's current footprint, expanding its operations in the region.
With a long-established presence in British Columbia and nearly a century of operating an integrated containerboard mill in Port Townsend, Washington, Crown is a natural long-term fit for the Richmond plant, providing integrated paper supply and complementary product and service offerings. The transaction ensures a seamless transition to an operator with deep roots in British Columbia and a commitment to continued investment in the plant and its capable team. Crown looks forward to welcoming the dedicated workforce, serving its longstanding customers and further deepening its presence across the region.
Cascades will work closely with Crown to support an orderly transition with customers, employees, and suppliers.
"Cascades is committed to improving profitability and optimizing its operational platform by allocating capital to its core markets. This transaction with Crown Paper Group supports the achievement of Cascades' strategic objectives while preserving the prospects of the Richmond plant. It allows to monetize valuable real estate assets while not impacting materially the cash flow profile of our Packaging sector. We thank all Richmond employees for their contribution and wish them all the best for the future," said Hugues Simon, President and Chief Executive Officer of Cascades.
"Acquiring the Richmond Box Plant is an important milestone in Crown's continued expansion, furthering the integration of our mill and box operations to provide our customers with exceptional service and product offerings. We are excited to welcome the Richmond team to Crown very soon and look forward to building on the plant's strong legacy of service and craftmanship," said Rob Kreizenbeck, Chief Executive Officer of Crown Paper Group.
About Cascades
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs close to 9,500 talented people across a network of nearly 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.
About Crown Paper Group
Crown Paper Group is a leading regional integrated containerboard business operating an integrated containerboard mill, two converting facilities and three company‑owned distribution centers. The company, which includes Port Townsend Paper Company, Crown Packaging and Boxmaster, has a strategic presence in the growing markets of the Pacific Northwest and Western Canada.
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SOURCE Cascades Inc.
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