Kingsey Falls, Quebec, Canada, 21 February 2011 – Cascades Inc. (CAS on the Toronto Stock Exchange), a leader in the recovery of recyclable materials and the manufacturing of green packaging and tissue paper products, reached an agreement on 18 February 2011, with OpenGate Capital a private equity firm, for the sale of its Norampac Avot-Vallée mill. The transaction should be completed on 01 March 2011.
Located in the north of France, Norampac Avot-Vallée specializes in the manufacturing of linerboard (white testliner) made from 100% recycled fibers, produces more than 145,000 tons yearly, and has approximately 160 employees. Since 1987, Cascades has supported its French subsidiary with strategic investments that have enabled Norampac Avot-Vallée to be the first French producer in terms of white testliner volume and to work with the largest European groups.
“Since Norampac's priority is to consolidate its leader position in North America, Cascades came to the conclusion that it would be more strategic for the group to sell the Avot-Vallée mill to a company that has the ability to ensure its development and continuity”, said Marc-André Dépin, president and chief executive officer of Norampac, a Division of Cascades Canada Inc.
“This transaction is part of our strategy to simplify our portfolio of assets, reduce our debt and concentrate on developing and improving the competitiveness of our key operations in packaging, tissue papers, and recovery," said Alain Lemaire, Cascades' president and chief executive officer. "I wish to thank all the employees for their involvement and efforts over the last 20 years.”
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 in North America and Europe. Its management philosophy, its experience of over 45 years 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.