KINGSEY FALLS, Que.—Cascades Inc. is selling its North American boxboard manufacturing operations to Georgia-based Graphic Packaging Holding Co. for $44.9 million.
“(This is) an important decision that once again signals (Cascades’) commitment to refocusing its activities in the strategic sectors in which it excels,” president and CEO Mario Plourde said in a statement announcing the deal.
“This transaction follows in the wake of a number of other actions taken during the course of the year, with a view to reducing our debt load and focusing our investments in certain core packaging sectors, as well as in the tissue paper and recovery sectors.”
The deal doesn’t affect the company’s European boxboard operations, Plourde noted.
The operations included in the deal are plants in East Angus, Que., Jonquiere, Que., Mississauga, Ont., Cobourg, Ont., and Winnipeg.
The five plants affected by the transaction employ in all approximately 670 workers, according to Cascades.
“The investments made in past years in these boxboard manufacturing and converting units have led to an opportunity to create synergies with a player such as Graphic Packaging,” Marc-Andre Depin, president and CEO of Cascades subsidiary Norampac, said.
“By exiting this sector of activity in North America, Cascades and Norampac are turning a page in their history.”
The deal is subject to standard closing conditions and regulatory review and is expected to close in the first quarter of 2015.