Cascades finalizes acquisition of 50% of shares not already held in affiliated company Papersource Converting Mill in Granby, Quebec, for C$60M, says tissue converting plant will optimize production in region
KINGSEY FALLS, Quebec
November 1, 2011
– Cascades Inc. (CAS: TSX), a leader in recovery and in green packaging and tissue paper products, announces that it has finalized the acquisition of 50% of the shares that it does not hold in its affiliated company Papersource Converting Mill Corp (Papersource), located in Granby. The amount of the transaction is approximately $60 million.
In commenting on this transaction, Suzanne Blanchet, President and Chief Executive Officer of Cascades Tissue Group stated: "The acquisition of the remaining shares of Papersource is another important step in our action plan to modernize our operations. This plant is at the cutting edge of technology and it will enable us to effectively optimize our production in the Northeastern United States, in Québec and in Ontario. We anticipate that it will have a positive effect on our profitability. Moreover, I am confident that the arrival of the founder of Papersource, Benoit Laferrière, will be most beneficial for the development of our organization."
Papersource is a tissue paper converting plant that manufactures products for the away-from-home market. It employs more than 160 employees. The quality of the equipment in the plant will make it a model plant within the Tissue Group.
Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The Company employs close to 11,000 employees, who work in more than 100 units located in North America and Europe. Its management philosophy, its more than 45 years of experience 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.