|Kingsey Falls, Quebec, Canada, 25 April 2006 -- /PRNewswire/ -- Cascades Inc. (CAS- TSX) announces that it has acquired certain of the assets of the paperboard division of Simkins Industries, located in Ridgefield, New Jersey, and in New Haven, Connecticut, for USD 12.5 million.
Those include a board mill located in Ridgefield, New Jersey, which will be closed within a short period, and a mill in New Haven, which will continue to operate during an unspecified transition period.
Concurrently with the purchase of these assets, Cascades and Simkins entered into a multiyear supply agreement for the supply of recycled coated boxboard to Simkins' folding carton plants. Simkins remains committed to growing its Specialty Papers and Folding Carton Divisions, and continuing to meet its customers needs.
Commenting on the transaction, Alain Lemaire, president and CEO of Cascades stated, "We are pleased to announce this transaction, which fits very well with our strategy of optimizing our North American boxboard operations and also should, over time, lead towards better overall efficiencies and operating rates for our mills. We will make every effort to meet the requirements of our new customers by enabling them in particular to benefit from our expertise in the manufacturing of boxboard."
Founded in 1964, Cascades produces, transforms, and markets packaging products, tissue paper, and fine papers, composed mainly of recycled fibers. Cascades employs nearly 14,300 men and women who work in some 120 modern and flexible production units located in North America, in Europe, and in Asia. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.
Simkins Industries is a privately-owned integrated company that manufactures boxboard made of 100% recycled fibers, quality folding cartons, and specialty papers. This family business has worked in the sector for more than 100 years.
Source: CASCADES INC.