A private equity investment firm has teamed up with management to acquire the Cascades Fine Papers Group from Cascades Inc. for $39.5 million.
The units covered by the transaction with H.I.G. Capital are:
- Rolland Division, an uncoated fine papers and security papers plant located in Saint-Jérôme, Que.
- CTC Converting Centre, a fine papers processing and distribution plant built in 1998, also located in Saint-Jérôme.
- Fibres Breakey, a de-inked bleached kraft pulp manufacturing plant located in Sainte-Hélène-de-Breakeyville, Que.
“This transaction provides stability and growth opportunities for all Rolland employees, customers, and suppliers. We are excited about the future of the business and the partnership with H.I.G.,” said Daniel Parrot, president and COO of Rolland Enterprises.
The three units employ about 425 workers.
The business will be re-named Rolland Enterprises, taking back the former name of the business prior to its purchase by Cascades in 1992.
The current management team will remain in place in order to ensure an orderly transition. Cascades will continue to work with the new owner for the procurement of waste paper.
“Despite the positive contribution of these units to Cascades' results, we have adopted a strategic orientation emphasizing growth in the packaging, tissue papers and recovery sectors,” Cascades president and CEO Mario Plourde commented. “The decision announced today will allow us to reduce debt and further focus our resources in these strategic sectors."
Rolland produces fine papers with up to 100% post-consumer waste content and targets a diversified base of customers in commercial, B2B, government and education segments. The company also has a long history as a leading producer of security papers, including paper used in passports, visas, tax stamps and checks.
Ricky Stokes, managing director of H.I.G. Capital, said, “The company is the industry leader with a long track record of producing innovative, high-quality products and the highest level of environmental sustainability. We are pleased to support the team in their growth and continued success.”
H.I.G. is a global private equity investment firm with more than $15 billion of equity capital under management.