Business
Cascades doubles its production of moulded pulp packaging with acquisitions in the United States
Cascades doubles its production of moulded pulp packaging with acquisitions in the United ...
About this update from Cascades Inc.
[{"type":"text","content":"\n\n\n\nCascades doubles its production of moulded pulp packaging with acquisitions in the United States\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nKINGSEY FALLS, QC, Dec. 6, 2018\n\n\n\nKINGSEY FALLS, QC, Dec. 6, 2018 /CNW Telbec/ - Cascades Inc. (TSX: CAS), a leader in the recovery and manufacturing of green packaging and tissue products, is pleased to announce the acquisition of assets, all located in the United States, which will allow the company to double its production capacity of ecological packaging manufactured in moulded pulp. The total cost of the transaction amounts to US$37.4 million. The effective date of the transaction is today.\nThe acquired manufacturing plants are Urban Forest Products and Clarion Packaging respectively located in Brook, Indiana and Clarion, Iowa; two of the top three egg-producing states in the U.S. The plants manufacture moulded pulp protective packaging that primarily serves the egg and quick service restaurant industries and have a combined workforce of just over 150 employees. Cascades also acquired a majority interest in Falcon Packaging, a leader in the distribution of egg packaging which has 31 employees in Ohio, Iowa and Georgia. Combined, these three companies have consolidated sales that exceed US$110M annually. \n\"These acquisitions give us the opportunity to improve Cascades' position in the strategic fresh protein and food services packaging markets. They are also in line with our objective to expand our moulded pulp activities, which produce a recycled, recyclable, compostable and biodegradable packaging product that offers highly interesting opportunities against a backdrop of expanding interest in the circular economy. The value of this transaction is in line with current Cascades trading multiple and will be accretive to net earnings\", said Mario Plourde, Cascades President and CEO. \nLuc Langevin, President and Chief Operating Officer of Cascades Specialty Products Group, added, \"The quality of the acquired assets and their complementary geographical...