December 11, 2019 By P&PC Staff
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.
“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.
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