Cascades to sell Canadian boxboard unit to Graphic Packaging
Dec. 12, 2014 – Quebec-based Cascades has reached a $44.9-million deal to sell its North American boxboard manufacturing and converting assets to Georgia-based Graphic Packaging Holding Company, affecting five operations in Quebec, Ontario and Manitoba that collectively employ 670 people.
The Cascades boxboard units affected by the sale are:
• East Angus, Que., a mill that manufactures recycled coated boxboard for the production of folding cartons.
• Jonquière, Que., a mill that manufactures three-ply coated boxboard from virgin or recycled fibre.
• Winnipeg, Man., a plant that manufactures folding cartons.
• Mississauga, Ont., a plant that manufactures graphic packaging.
• Cobourg, Ont., a plant that manufactures flexographic boxboard containers.
Mario Plourde, Cascades president and CEO, said the sale follows in the wake of other actions taken over the year with the view to reduce its debt load, and focus its investments in certain core packaging, tissue paper and recovery sectors.
“The transaction is a continuation of our acquisition strategy to grow integrated folding carton converting volumes in key geographies and end-markets. These assets will broaden our customer base and allow us to offer our current customers a wider range of products,” said David Scheible, Graphic Packaging chair, president and CEO.
Cascades’ European boxboard unit will not be affected by the sale.
PHOTO: An interior shot of the Cascades Jonquière boxboard mill. Photo courtesy Cascades.
— With files from The Canadian Press