Cascades announces the sale of its Richmond, British Columbia, packaging plant to Crown Paper Group

Executive Summary

• Cascades Inc. entered into an agreement to sell its Richmond, British Columbia corrugated packaging plant to Crown Paper Group for a total consideration of $65.5 million (including real estate and working‑capital adjustments).
• The transaction is intended to optimize Cascades’ operations, reduce debt, and focus capital on core markets; it is expected to close in the coming days subject to customary conditions.
• Crown Paper Group will assume certain liabilities and integrate the plant into its existing Pacific Northwest/Western Canada footprint, preserving employment and customer service continuity.

Key Details

• Transaction Value: $65.5 million (includes real estate assets, working‑capital adjustments, and assumption of specified liabilities).
• Seller: Cascades Inc. (TSX: CAS) – a North American packaging, hygiene, and recovery solutions provider.
• Buyer: Crown Paper Group – regional integrated containerboard business with operations in the Pacific Northwest and Western Canada.
• Asset Sold: Corrugated packaging plant located in Richmond, British Columbia (formerly part of Cascades’ Packaging sector).
• Closing Timeline: Expected to be completed “in the coming days,” subject to customary closing conditions and adjustments.
• Strategic Rationale for Cascades:
• Optimize operational platform and improve profitability.
• Reduce overall debt levels.
• Monetize valuable real‑estate assets without materially impacting cash‑flow profile of the Packaging sector.
• Strategic Fit for Crown Paper Group:
• Expands Crown’s footprint in British Columbia, aligning with its existing integrated paper supply chain.
• Provides synergy with Crown’s containerboard mill and converting facilities, enhancing service to customers.
• Operational Impact:
• No immediate impact on Cascades’ cash‑flow; plant will continue operations under new ownership.
• Cascades will support an orderly transition for customers, employees, and suppliers.
• Leadership Comments:
• Hugues Simon (President & CEO, Cascades) highlighted the transaction’s role in improving profitability and focusing capital on core markets.
• Rob Kreizenbeck (CEO, Crown Paper Group) described the acquisition as a milestone supporting Crown’s expansion and integration strategy.

Notable Quotes

• “This transaction with Crown Paper Group supports the achievement of Cascades' strategic objectives while preserving the prospects of the Richmond plant… it allows us to monetize valuable real‑estate assets while not impacting materially the cash‑flow profile of our Packaging sector.” – Hugues Simon, President & CEO, Cascades.
• “Acquiring the Richmond Box Plant is an important milestone in Crown's continued expansion… we are excited to welcome the Richmond team to Crown very soon.” – Rob Kreizenbeck, CEO, Crown Paper Group.