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Cascades to purchase additional interest in Greenpac containerboard mill


December 11, 2019
By P&PC Staff

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Cascades is purchasing Caisse de dépôt et placement du Québec (CDPQ)’s interest in Greenpac Holding, a lightweight containerboard mill located in Niagara Falls, New York.

CDPQ owns a 20.2 per cent interest in Greenpac. The expected purchase price is approximately US$93 million. The transaction is expected to close Jan. 3, 2020.

As of Dec. 11, 2019, Cascades owns a 66.1 per cent interest in Greenpac, a joint venture created in partnership with CDPQ, Jamestown Container Companies and Containerboard Partners.

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“This transaction is an important part of Cascades’ strategic plan, and will improve our available cash flow,” says Mario Plourde, president and CEO of Cascades, in a release. “This decision is another step in a series of actions that we have carried out over the past few years to improve our position in an increasingly competitive market. I would like to thank CDPQ for its support in this important project. From the outset, we developed and maintained a truly successful, winning partnership.”

Greenpac manufactures a lightweight linerboard made with 100 per cent recycled fibres on a machine with an annual production capacity of 540,000 short tons. The mill employs 152 people.