KINGSEY FALLS, QC, June 13, 2011 /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 entered into an agreement with OpenGate Capital, a private
equity firm, for the sale of two of its boxboard facilities namely the
Versailles mill located in Connecticut and the Hebron plant located in
Kentucky. The sale is expected to be completed on June 23, 2011. The
terms of the transaction were not disclosed.
The Versailles mill specializes in the manufacturing of coated recycled
boxboard, and has an annual production capacity of 165,000 tons. The
Hebron plant converts coated boxboard into approximately 20,000 tons of
folding cartons annually.
Net proceeds from the transaction will be reinvested in the other
Cascades boxboard facilities, to improve their operations, efficiency
and competitiveness in the years to come. In particular, Cascades plans
to purchase new printing presses and other equipments for certain of
its remaining folding carton plants. The Canadian boxboard mills will
also benefit from this transaction through future capital investments.
Alain Lemaire, President and Chief Executive Officer of Cascades, said:
"The divestiture of the Versailles and Hebron facilities, following the
sales of Dopaco and the Avot-Vallée mill announced earlier this year,
is a further step in our overall strategy to gain more financial
flexibility and streamline our portfolio of assets in order to better
pursue the development of our core operations. We intend to continue
focusing our efforts and investments towards modernizing our packaging
and tissue paper facilities to improve productivity and profitability."
"Cascades and OpenGate Capital have made every effort to ensure the
transfer of ownership will be seamless for the customers of both
facilities" stated Marc-André Dépin, President and Chief Executive
Officer of Norampac, a division of Cascades Canada Inc. "We want to
thank the Versailles and Hebron employees for their involvement and
efforts throughout the years, and wish them every success", added Mr.
Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Company employs more than 11,000 employees, who work in more than 100
units located in North America and Europe. Its management philosophy,
its experience of over 45 years 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.
SOURCE CASCADES INC.
For further information:
| Media |
Vice-President, Communications and Public Affairs
| || Source: |
President and Chief Executive Officer
Norampac, a division of Cascades Inc.
| Investor Relations |
Director, Investor Relations