Kingsey Falls, Quebec, Canada, 01 November 2011 – Cascades Inc. (CAS: TSX), a leader in recovery and in green packaging and tissue paper products, has finalized the acquisition of the 50% of shares that it did not already hold in its affiliated company Papersource Converting Mill Corp (Papersource), located in Granby, Quebec. The amount of the transaction is approximately CAD 60 million.
"The acquisition of the remaining shares of Papersource is another important step in our action plan to modernize our operations," said Suzanne Blanchet, president and chief executive officer of Cascades Tissue Group. "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 fibers. The company employs close to 11,000 employees, who work in more than 100 units 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.