Cascades Agrees to Sell Linerboard Mill in France
Feb. 21, 2011 - Cascades Inc. said that it has reached an agreement with OpenGate Capital, a private equity firm, for the sale of its Norampac Avot-Vallee mill in France.
Cascades expects the deal to close on March 1, 2011.
Located in the North of France, the Avot-Vallee mil produces linerboard (white Testliner) made from 100% recycled fiber. The mill has a production capacity of about 145,000 tons per year employs approximately 160 employees.
"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-Vallee mill to a company that has the ability to ensure its development and continuity," said Marc-Andre Depin, president and CEO of Norampac, a division of Cascades Canada Inc.
Alain Lemaire, Cascades' president and CEO added, "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. Therefore, I wish to thank all the employees for their involvement and efforts over the last 20 years."