Cascades buys Domtar’s stake in Norampac
December 12, 2006 By Pulp & Paper Canada
Domtar is selling its 50% stake in Norampac to Cascades. The company feels the move will help it to focus on its fi…
Domtar is selling its 50% stake in Norampac to Cascades. The company feels the move will help it to focus on its fine papers division. The $560 million deal will position Domtar to reduce its financing requirements for its transaction with Weyerhaeuser.
“The combination of our packaging assets with Cascades’ has been a success for both partners,” Raymond Royer, president and CEO said of the deal.
“While we considered our participation in Norampac as a good investment and always supported its growth throughout the years, this interest in Norampac had long been identified as non-core to Domtar. The transaction announced today represents another step Domtar is taking to deliver on its strategic plan aimed at becoming a preferred supplier of fine paper productsand at monetizing non-core assets in an effort to strengthen its overall financial position.”
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