Kingsey Falls, Quebec, Canada, 19 July 2011 – Cascades Inc. (CAS on the Toronto Stock Exchange), a leader in recovery and in green packaging and tissue paper products, announces that it will purchase the remaining 50% of shares that it does not hold in the company Papersource Converting Mill Corporation, in Granby.
The cash purchase price for the acquired shares will be approximately CAD 60 million and Cascades will assume a debt of approximately CAD 25 million, for an approximate corresponding enterprise value of CAD 145 million. The transaction, expected to be signed in mid-September, is contingent upon the approval of the Competition Bureau. The 100% ownership of Papersource will have a positive impact on Cascades' net consolidated results.
"With sales of more than CAD 130 million and a consumption of more than 90,000 tons per year, the acquisition of the remaining shares of Papersource will increase the level of integration of Cascades Tissue Group to more than 70% and will thus strengthen its positioning in the away-from-home segment in Canada and in the United States," said Suzanne Blanchet, president and chief executive officer of Cascades Tissue Group.
"This announcement confirms the firm intention of Cascades to be a key player in the tissue paper sector in North America," said Alain Lemaire, president and chief executive officer of Cascades.
Papersource is a tissue paper converting plant that is at the cutting edge of technology, which essentially manufactures products for the away-from-home market. It employs more than 160 employees.
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 persons, who work in more than 100 units in North America and Europe. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.