KINGSEY FALLS, QC, Nov. 1, 2011 /CNW Telbec/ - Cascades Inc. (TSX: CAS),
a leader in recovery and in green packaging and tissue paper products,
announces that it has finalized the acquisition of 50% of the shares
that it does not hold in its affiliated company Papersource Converting
Mill Corp (Papersource), located in Granby. The amount of the
transaction is approximately $60 million.
In commenting on this transaction, Suzanne Blanchet, President and Chief
Executive Officer of Cascades Tissue Group stated: "The acquisition of
the remaining shares of Papersource is another important step in our
action plan to modernize our operations. This plant is at the cutting
edge of technology and it will enable us to effectively optimize our
production in the Northeastern United States, in Québec and in
Ontario. We anticipate that it will have a positive effect on our
profitability. Moreover, I am confident that the arrival of the
founder of Papersource, Benoit Laferrière, will be most beneficial for
the development of our organization."
Papersource is a tissue paper converting plant that manufactures
products for the away-from-home market. It employs more than 160
employees. The quality of the equipment in the plant will make it a
model plant within the Tissue Group.
Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Company employs close to 11,000 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.
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: