Cascades purchases the interest of CDPQ in Greenpac
KINGSEY FALLS, QC (News release) -- Cascades Inc. announced that it is exercising its option to purchase the interest of the Caisse de dépôt et placement du Québec (CDPQ) in Greenpac Holding LLC ("Greenpac").
CDPQ owns a 20.2% interest in Greenpac, a state-of-the-art lightweight containerboard mill, located in Niagara Falls, NY. The expected purchase price is approximately US$93 million. The transaction is expected to close January 3rd, 2020.
As of today, Cascades owns a 66.1% interest in Greenpac, a joint venture created in partnership with CDPQ, Jamestown Container Companies and Containerboard Partners.
"This transaction is an important part of Cascades' strategic plan, and will improve our available cash flow," said Mario Plourde, President and CEO. "This decision is another step in a series of actions that we have carried out over the past few years to improve our position in an increasingly competitive market. I would like to thank CDPQ for its support in this important project. From the outset, we developed and maintained a truly successful, winning partnership."
Considered to be amongst the most advanced mills in the industry in North America, Greenpac manufactures a lightweight linerboard, made with 100% recycled fibres, on a machine with an annual production capacity of 540,000 short tons. The mill employs 152 people.