Cascades Acquires Four Packaging Facilities to Expand Ontario Footprints

SEATTLE (Scrap Monster): Cascades, Inc. has announced acquisition of four packaging plants in Ontario, as part of its efforts to expand its footprints across the province. In addition, the company also confirmed that it has purchased an ownership position in Tencorr Holdings Corporation. Also, Cascades has separately announced that it has further increased its shareholding in Greenpac Mill LLC.

The total cost of the entire transactions is $49 Million, out of this $28 million is towards acquisition of the four mills and the balance $21 million towards stake increase in Greenpac and creation of new position in Tencorr.

Cascades, Inc. has acquired the McLeish Corr -a-Box Packaging & Design plant in Etobicoke, Brown Packaging plant in Burlington, Coyle Corrugated Containers Inc. in Scarborough and Coyle Packaging (Peterborough) Ltd. in Peterborough from the Coyle family. In addition, the company has also acquired one-third stake in Tencorr Holdings Corporation, previously held by the Coyle family. The acquisition of the four Ontario plants is expected to strengthen the company’s position in the containerboard packaging sector, by expanding its presence in Ontario.

Cascades President and CEO Mario Plourde stated that the transactions are in line with the company’s strategic plans to expand containerboard activities. The acquisition of the new plants will add at least 500 million square feet of production capacity per year to its Ontario operations. Furthermore, it will help the company to better serve its box and specialty products markets in the above regions. Charles Malo, president and chief operating officer of Cascades Containerboard Packaging welcomed all employees of all the four plants to Cascades family. The new assets will provide the company with increased capacity and flexibility, Malo added.

The company press release states that it has increased its equity holdings in Niagara Falls-based Greenpac- a manufacturer of lightweight linerboard out of 100% recycled fibres- from 62.5% to 66.1%. This is the second time this year that the company has increased stake in Greenpac. Earlier in April 2017, Cascades had increased its ownership stake in Greenpac from 59.7% to 62.5%. It must be noted that Cascades, Inc. had reported significant boost in sales and operating income from conatinerboard segment in Q3 ’17 results, primarily on account of consolidation of Greenpac results.