Cascades Inc. has announced the sale of its Richmond, British Columbia, corrugated board plant to the Crown Paper Group. According to the company, the transaction has a total value of USD 65.5 million including real estate assets.
According to Cascades, in addition to the properties, the agreement also includes adjustments to working capital and the assumption of certain liabilities. The sale takes place against the backdrop of the company's strategic focus on optimising its operating structure and reducing its debt.
Strategic realignment at Cascades
According to Cascades, the Richmond mill only offered limited integration and synergy potential within its own network due to its geographical location. For Crown Paper Group, on the other hand, the location was a strategic fit with its existing presence in the region and would enable it to expand its activities in western Canada.
Cascades announced that it will work closely with Crown to ensure an orderly transition for customers, employees and suppliers.
Crown strengthens integration of paper and packaging activities
For Crown Paper Group, the acquisition represents a further step towards vertical integration. Among other things, the company operates an integrated containerboard mill in Port Townsend, Washington, as well as several converting and distribution sites in the Pacific Northwest and Western Canada.
„The acquisition is an important milestone in Crown's continued expansion and furthers the integration of our paper and packaging operations to deliver exceptional service and product offerings to our customers. We are excited to welcome the Richmond team to Crown in the near future and look forward to building on the strong heritage of the site.“
Rob Kreizenbeck, Chief Executive Officer of the Crown Paper Group
Crown has a long-standing presence in British Columbia and is therefore a suitable long-term operator of the site, according to the press release.
Source: Cascades
