Cascades Closes Sale of Fine Papers Distribution Assets
March 1, 2006 - Cascades Inc. said that it has completed on February 28, 2006, the sale of its fine papers distribution assets known as Cascades Resources to PaperlinX Canada limited, previously known as Coast Paper Limited.
The transaction amounts to $CA 81 million and is subject to certain selling price adjustments. Of this amount, $CA 77 million has already been received and applied towards the reduction of Cascades' debt.
Alain Lemaire, President and CEO of Cascades, said, "The sale of Cascades Resources represents an important step towards Cascades' goal of concentrating its activities in the core segments of packaging and tissue while realigning its fine paper product offering towards the recycled content, surface treated and security papers markets. In addition, this transaction will allow us to strengthen our balance sheet and financial ratios while continuing to provide, through a distribution agreement, specialty fine paper products produced at our St-Jerome mill."
SOURCE: Cascades Inc