Cascades acquires Orchids Paper Products assets
by CMO Staff
The Canadian manufacturer of packaging and tissue products is offering US$207 million to seal the deal
Kingsey Falls, QC – Cascades has entered into an agreement to purchase Orchids Paper Products Company, a manufacturer of paper towels, bath tissue and paper napkins.
The Canadian manufacturer of packaging and tissue products said will pay a cash consideration of US$207 million for the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain assets, the supply and other commercial arrangements with Fabrica de Papel San Francisco, S.A. de C.V., based in Mexicali, Mexico, and certain of its affiliates. The transaction is expected to close in August or September.
Orchids Paper’s integrated plants have an estimated parent roll capacity of up to 114,000 tons and up to an estimated 114,500 tons of converting capacity. Additionally, Orchids Paper has an agreement with Fabrica providing access for up to an additional 20,000 tons of converted products for the Western U.S. market. More than US$240 million has been invested in the plants’ modern production and converting equipment and strategic partnership over the last five years.
In the coming months, Cascades said it will invest approximately US$5 million to add swing functionality to expand the range of products that can be manufactured from ultra-premium structured tissue to high-quality conventional, thereby maximizing its full potential.
Mario Plourde, president and CEO, Cascades, said the strategic investments would modernize company assets, lower fixed cost base and improve its logistics network.
Separately, Cascades announced recently that it was a member of the Amazon Packaging Support and Supplier (APASS) network. The program supports vendors, sellers and manufacturers in ensuring packaging is the right size, protected against damage, ready-to-ship without the need for additional packaging, and ideally easy to open and recyclable.
