Cascades Finalizes Sale of Fine Papers Distribution Assets
KINGSEY FALLS, Quebec -- Cascades Inc. has completed the sale of its fine papers distribution assets, known as Cascades Resources, to PaperlinX Canada Limited, previously known as Coast Paper Limited.
The transaction amounts to $CA 81 million and is subject to certain selling price adjustments. Of this amount, $CA 77 million has already been received and applied towards the reduction of Cascades' debt.
"The sale of Cascades Resources represents an important step towards Cascades' goal of concentrating its activities in the core segments of packaging and tissue while realigning its fine paper product offering towards the recycled content, surface treated and security papers markets,"
says Alain Lemaire, president and CEO of Cascades. "In addition, this transaction will allow us to strengthen our balance sheet and financial ratios while continuing to provide, through a distribution agreement, specialty fine paper products produced at our St-Jérôme mill."
Cascades produces, transforms and markets packaging products, tissue paper and fine papers, composed mainly of recycled fibres. Cascades employs nearly 14,400 men and women who work in some 120 modern and flexible production units located in North America, in Europe and in Asia.