For $14.5 million, Cascades is buying Caraustar’s coated recycled board mill in Sprague, CT.
For $14.5 million, Cascades is buying Caraustar’s coated recycled board mill in Sprague, CT.
The facility has an annual production capacity of close to 180,000 shorts tons, which represents an estimated 7% of the North American coated recycled boxboard manufacturing capacity.
In addition to this purchase, the two companies also signed a five-year board supply agreement, which stipulates that Cascades will supply 30,000 short tons of coated recycled board to Caraustar’s folding carton plants every year.
“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 through an improved product and customer mix,” said Cascades CEO Alain Lemaire of the purchase.
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