Cascades wins bid for acquisition of Orchids Paper Products assets
By P&PC Staff
By P&PC Staff
June 28, 2019 – Cascades has won an auction to acquire the assets of Orchids Paper Products in the United States.
The Cascades agreement is subject to approval by the United States Bankruptcy Court at a hearing scheduled for July 1, 2019.
The transaction, which will be completed for a cash consideration of US$207 million, will cover substantially all the company’s assets, including the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain equipment and some of Orchids Paper’s commercial arrangements with Fabrica de Papel San Francisco, S.A. de C.V., based in Mexicali, Mexico.
Orchid Paper’s integrated plants have an estimated parent roll capacity of up to 114,000 tons and an estimated converting capacity of up to 114,500 tons.
Additionally, Orchids Paper has an agreement with Fabrica providing access for up to 20,000 tons of converted products for the Western U.S. market. Orchids Paper has invested more than US$240 million in its assets and strategic supply arrangement with Fabrica over the past five years.
In a release, Cascades says the acquisition will accelerate the modernization of its tissue asset base, reduce sub-contracting and transportation costs, and increase its geographical footprint to better serve its customers.
Cascades will provide additional information following the Bankruptcy Court approval of the agreement and will not provide any further public comments or interviews until that time.
Cascades is a recovery specialist and manufacturer of packaging and tissue products headquartered in Quebec.