Cascades to sell Flexible Packaging plant activities

Executive Summary

• Cascades Inc. agreed to sell its Flexible Packaging plant activities in Mississauga, Ontario to Five Star Holding for CAD 31 million, effective immediately.
• The transaction will reduce Cascades’ debt and includes a supply agreement to continue production of flexible film for Cascades’ tissue and packaging businesses.
• All 45 employees at the plant will be retained by Five Star, and Cascades will retain ownership of the real‑estate site.

Key Details

• Transaction Value: CAD 31 million cash consideration.
• Assets Sold: Flexible Packaging plant activities (manufacturing printed flexible plastic packaging and films).
• Retained Assets: Real‑estate site on which the plant is located remains owned by Cascades.
• Employees: 45 workers at the Mississauga facility will be transferred to Five Star at closing.
• Supply Agreement: A downstream supply agreement ensures continued production and delivery of flexible film for Cascades’ tissue and packaging sectors.
• Strategic Rationale: Sale supports debt reduction and allows Cascades to focus on strategic growth sectors; Five Star gains a platform to expand sustainability‑focused packaging in North America.
• Closing: Transaction effective immediately upon signing.

Notable Quotes

• “Today's decision will allow us to reduce our debt and support the optimization of our operational platform to grow our strategic sectors.” – Hugues Simon, President & CEO, Cascades Inc.
• “This acquisition will accelerate our growth in sustainability‑focused packaging for consumer, food and beverage markets in Canada and throughout North America.” – Alex Huis In ’T Veld, CEO, Five Star Holding.