Kingsey Falls, Quebec, Canada, 02 May 2011 -- Cascades Inc. (TSX: CAS), a leader in the recovery of recyclable materials and the manufacturing of green packaging and tissue paper products, has completed the previously announced sale of Dopaco Inc., its paper cup and carton converting business for the quick-service restaurant and foodservice industries, to Reynolds Group Holdings Limited for a cash consideration of USD 400 million.
Net proceeds from the transaction should amount to approximately USD 337 million and will mainly be used to pay down Cascades' debt. In connection with the transaction, Cascades will continue to supply boxboard to Dopaco, through a five-year nonexclusive supply agreement.
Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibers. The company employs close to 12,500 employees, who work in more than 100 units located 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.
Dopaco Inc. is a leading manufacturer of cups and folding cartons for the quick-service restaurant and food service industries. It operates six plants (two in Ontario, Canada, and four in the United States) and converts some 165,000 tonnes of boxboard a year.
Reynolds Group is a leading global manufacturer and supplier of consumer food and beverage packaging and storage products.