Cascades to Buy Atlantic Packaging's Tissue Unit
June 12, 2009 - Cascades Inc. today said that it has reached an agreement with Atlantic Packaging Products Ltd. to acquire Atlantic's tissue business for approximately C$60 million (US$54.10 million).
The deal would increase Cascades annual capacity of recycled tissue by 55,000 tonnes, along with enhancing the company's converting capacity by nearly to 70,000 tonnes.
The assets, which are located in or close to Toronto, would increase the number of Cascades employees in Ontario by 175, totaling 2,175 employees for the company in that province.
"This acquisition is in keeping with two of our main long term strategic objectives: continued growth of our tissue business and consolidation of our leadership position in the development of environmentally responsible products," said Alain Lemaire, president and CEO of Cascades.
"The tissue sector has proven itself to be recession resistant showing steady growth thru the economic cycles and we believe business perspectives for this sector will continue to be advantageous for us going forward, particularly in the area of recycled products where Atlantic brings us added expertise," Lemaire added.
The deal is subject to the usual conditions, including the approval of the Competition Bureau.
SOURCE: Cascades Inc.