KINGSEY FALLS, QC, April 29 /CNW Telbec/ - Cascades Inc. (TSX: CAS), a
leader in the recovery of recyclable materials and the manufacturing of
green packaging and tissue paper products, announces that it has
completed the previously announced sale of Dopaco Inc., its paper cup
and carton converting business for the quick-service restaurant and
foodservice industries, to Reynolds Group Holdings Limited for a cash
consideration of US$400 million.
Net proceeds from the transaction should amount to approximately US$337
million and will mainly be used to pay down Cascades' debt. In
connection with the transaction, Cascades will continue to supply
boxboard to Dopaco, through a five year non-exclusive supply agreement.
For further details on the transaction, please refer to the press
release issued on March 11, 2011, and to the investor presentation
available at www.cascades.com/investors.
Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Company employs close to 12,500 employees, who work in more than 100
units located in North America and Europe. Its management philosophy,
its more than 45 years of experience in recycling and its continued
efforts in research and development are strengths that enable Cascades
to create new products for its customers. Cascades' shares trade on the
Toronto Stock Exchange, under the ticker symbol CAS.
Dopaco Inc. is a leading manufacturer of cups and folding cartons for
the quick-service restaurant and food service industries. It operates
six plants (two in Ontario and four in the United States) and converts
some 165,000 tonnes of boxboard a year.
About Reynolds Group Holdings Limited
Reynolds Group is a leading global manufacturer and supplier of consumer
food and beverage packaging and storage products.
Certain statements in this release, including statements regarding
future results and performance, are forward-looking statements (as such
term is defined under the Private Securities Litigation Reform Act of
1995) based on current expectations. The accuracy of such statements is
subject to a number of risks, uncertainties and assumptions that may
cause actual results to differ materially from those projected,
including, but not limited to, the effect of general economic
conditions, decreases in demand for the Company's products, increases
in raw material costs, fluctuations in selling prices and adverse
changes in general market and industry conditions and other factors
listed in the Company's Securities and Exchange Commission filings.
SOURCE CASCADES INC.
For further information:
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Vice-President, Communications and Public Affairs
Director, Investor relations
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President and Chief Executive Officer