KINGSEY FALLS, QC, Aug. 2 /CNW Telbec/ - Cascades Inc. (CAS-TSX)
announces that it has entered into an agreement with Honeycomb Products of
Michigan (HPM) to acquire the assets of HPM's honeycomb board mill located in
Grand Rapids, Michigan. The transaction is not material and its terms were not
The acquisition of HPM enables Cascades Speciality Products Group to
solidify its position as the second largest manufacturer of honeycomb board in
the market and to increase its "green" industrial packaging product line
entirely made from recycled paper. It is also a great opportunity for Cascades
to further increase its vertical integration.
Commenting on the transaction, Mario Plourde, President and Chief
Operating Officer of Cascades Speciality Products Group stated: "This
transaction fits perfectly well with our strategic plan. Through its enviable
geographical positioning, the acquisition of the HPM plant will facilitate our
efforts to penetrate the US market. Furthermore, the quality of HPM's
products, its strong management team and its continuously improving
performance offer strong support for improving and sustainable profitability".
End-markets for honeycomb products include the packaging of furniture,
household-appliance and transportation industries.
Founded in 1964, Cascades produces, transforms and markets packaging and
tissue products composed mainly of recycled fibres. Cascades employs close to
14 000 employees who work in more than 100 modern and flexible production
units located in North - America and Europe. Cascades' management philosophy,
its more than 40 years of experience in recycling, its continued efforts in
research and development are strengths which enable the company to create new
products for its customers. The 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.
For further information:
For further information: Media: Mr. Hubert Bolduc, Vice-President,
Communications and publics affairs, (819) 363-5164; Investor Relations: Mr.
Marc Jasmin, CFA. Director, Investor Relations, (514) 282-2681; Source: Mr.
Mario Plourde, President and Chief Operating Officer, Cascades Specialty