KINGSEY FALLS, QC, July 1, 2014 /CNW Telbec/ - Cascades Inc. (TSX: CAS),
a leader in the recovery and manufacturing of green packaging and
tissue paper products, announces that it has reached an agreement with
Rolland Enterprises Inc., a subsidiary of H.I.G. Capital for the sale
of its fine papers activities for $39.5 million.
The units covered by this transaction are:
Rolland Division, an uncoated fine papers and security papers plant
located in Saint-Jérôme. Founded in 1882, it was acquired by Cascades
CTC Converting Centre, a fine papers processing and distribution plant
built in 1998, also located in Saint-Jérôme.
Fibres Breakey, a de-inked bleached kraft pulp manufacturing plant
located in Sainte-Hélène-de-Breakeyville. It was founded in 1985.
The three units employ some 425 workers and will now operate under a new
company name—Rolland Enterprises Inc. The current management team will
remain in place in order to ensure an orderly transition. In accordance
with the terms of the transaction, Cascades will continue to work with
the new owner for the procurement of waste paper, and to ensure a
smooth transfer of ownership for employees, customers and suppliers.
"Despite the positive contribution of these units to Cascades' results,
we have adopted a strategic orientation emphasizing growth in the
packaging, tissue papers and recovery sectors. The decision announced
today will allow us to reduce debt and further focus our resources in
these strategic sectors," emphasized Cascades President and CEO Mario
"Cascades has found in H.I.G. Capital a purchaser willing to maintain
the operations and ensure the development of the units," stated Luc
Langevin, President and COO of Cascades Specialty Products Group. "It
is not without regret that we part with these business units, however,
given our stated strategic orientation, we believe this transaction
will allow them to better pursue their development initiatives and
thereby continue to promote the Rolland brand all around the world. For
its part, the Specialty Products Group of Cascades will continue to
concentrate its development in the industrial and consumer packaging
products sectors as well as in recycling."
Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Company employs more than 12,000 employees, who work in over 100
production units located in North America and Europe. With its
management philosophy, half a century of experience in recycling, and
continuous efforts in research and development as driving forces,
Cascades continues to deliver the innovative products that customers
have come to rely on. Cascades' shares trade on the Toronto Stock
Exchange, under the ticker symbol CAS.
SOURCE: Cascades Inc.
For further information:
Vice-President, Communications and Public Affairs
Director, Investor Relations
Web site: www.cascades.com
Green by Nature Blog: http://blog.cascades.com/
Twitter: twitter.com/@CascadesDD | twitter.com/@CascadesSD | twitter.com/@CascadesInvest