Recycling, paper and packaging group Cascades parts with its uncoated woodfree and security paper business. Specialty Products Group of Cascades will concentrate its future development in the industrial packaging, consumer packaging and recycling segments.
Cascades is exiting fine and security paper markets to focus on packaging, tissue and recycling business. The company announced the sale of its fine paper activities to Rolland Enterprises Inc, a H.I.G. Capital subsidiary. The purchase price stands at CAD39.5m, according to a press release issued by Cascades.
The transaction covers three units of the Cascades Fine Paper Group in Canada with a workforce of 425: the Rolland Division woodfree uncoated paper mill in Saint-Jérôme with an installed capacity of 140,000 tpy of commercial printing, copy, envelope and security papers; Fibres Breakey, a 75,000 metr.t de-inked bleached kraft pulp mill in Sainte-Hélène-de-Breakeyville and CTC Converting Centre, the 105,000 tpy fine papers processing and distribution plant in Saint-Jérôme.
"Despite the positive contribution of these units to Cascades' results, we have adopted a strategic orientation emphasizing growth in the packaging, tissue papers and recovery sectors. The decision announced today will allow us to reduce debt and further focus our resources in these strategic sectors," emphasized Cascades President and CEO Mario Plourde.
H.I.G. Capital is said to continue operations at the three units involved. The current management team will remain in place in order to ensure smooth ownership transition, Cascades explained.