Cascades to acquire Atlantic Packaging’s tissue business
June 16, 2009 By Pulp & Paper Canada
Cascades Inc. has reached an agreement with Atlantic Packaging Products Ltd. to acquire its tissue business for the…
Cascades Inc. has reached an agreement with Atlantic Packaging Products Ltd. to acquire its tissue business for the price of approximately $60 million.
Once completed, this transaction will enable Cascades Tissue Group to increase its annual capacity of recycled tissue by 55,000 tonnes, while augmenting converting capacity by close to 70,000 tonnes. These assets are located in or close to Toronto, increasing the number of Cascades employees in Ontario by 175.
Commenting on the transaction, Alain Lemaire, president and CEO, stated: “This acquisition is in keeping with two of our main long term strategic objectives: continued growth of our tissue business and consolidation of our leadership position in the development of environmentally responsible products. The tissue sector has proven itself to be recession resistant showing steady growth through the economic cycles and we believe business perspectives for this sector will continue to be advantageous for us going forward, particularly in the area of recycled products where Atlantic brings us added expertise.”
This transaction is subject to the usual conditions, including the approval of the Competition Bureau. The parties expect to complete the transaction within 15 days following the date such approval is obtained.
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