Cascades to Buy Caraustar's Board Mill in Sprague, CT
April 24, 2006 - Cascades Inc. on Friday said that it has agreed to buy the assets of Caraustar Inc.'s coated recycled board mill located in Sprague, Connecticut for US$ 14.5 million.
The companies expect the deal to close within a month.
According to Cascades, the Sprague mill is a state of the art manufacturing facility with an annual production capacity of close to 180,000 short tons which represents an estimated 7% of the North-American coated recycled boxboard manufacturing capacity.
In addition to the purchase agreement, Casacades and Carastar also signed a five-year board supply agreement pursuant to which Cascades will supply annually 30,000 short tons of coated recycled board to Caraustar's folding carton plants.
Alain Lemaire, president and CEO of Cascades, said, "This transaction represents a further step towards our stated goal of improving the performance of our Boxboard Group. As was the case with previous transactions realized by this group, this acquisition will allow us to increase productivity at all of our board mills while improving profitability thru an improved product and customer mix. Moreover this acquisition will enable us to move our board manufacturing closer to our customer base while increasing our presence in the United States thereby further reducing our exposure to fluctuations in the exchange rate."
SOURCE: Cascades Inc.