Cas­cades ac­quires eco­pack­ag­ing plants for $37.4M (U.S.)

Cas­cades Inc. has ac­quired Ur­ban For­est Prod­ucts and Clar­ion Pack­ag­ing in In­di­ana and Iowa, re­spec­tively, for $37.4-mil­lion (U.S.).

Stockwatch Daily - - FRONT PAGE - Mr. Mario Plourde re­ports

CAS­CADES INC. has ac­quired 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 $37.4-mil­lion (U.S.). The ef­fec­tive date of the trans­ac­tion is to­day.

The ac­quired man­u­fac­tur­ing plants are Ur­ban For­est Prod­ucts and Clar­ion Pack­ag­ing, re­spec­tively, lo­cated in Brook, Ind., 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 work force 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 $110-mil­lion (U.S.) an­nu­ally.

“These ac­qui­si­tions give us the op­por­tu­nity to im­prove Cas­cades’s 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 chief ex­ec­u­tive of­fi­cer. Luc Langevin, pres­i­dent and chief op­er­at­ing of­fi­cer of Cas­cades Spe­cialty Prod­ucts Group, added: “The qual­ity of the ac­quired as­sets and their com­ple­men­tary ge­o­graph­i­cal po­si­tion­ing with our ex­ist­ing plants that man­u­fac­ture moulded pulp pack­ag­ing will al­low us to im­prove the ser­vice we pro­vide to our cus­tomers, and sup­port our in­no­va­tion ini­tia­tives. With four moulded pulp plants ef­fi­ciently spread out across North Amer­ica, Cas­cades will build syn­ergy, im­prove the distri­bu­tion of pro­duc­tion vol­umes and al­low cer­tain sites to spe­cial­ize. By dou­bling our pro­duc­tion of moulded pulp pack­ag­ing, to­day’s an­nounce­ment un­der­lines our com­mit­ment to con­tinue grow­ing our pres­ence in the green pack­ag­ing mar­ket.”

About Cas­cades Inc.

Founded in 1964, Cas­cades of­fers sus­tain­able, in­no­va­tive and value-added so­lu­tions for pack­ag­ing, hy­giene and re­cov­ery needs. The com­pany em­ploys 11,000 women and men, who work in over 90 pro­duc­tion units in North Amer­ica and Europe. With its man­age­ment phi­los­o­phy, half a cen­tury of ex­pe­ri­ence in re­cy­cling, and con­tin­u­ous ef­forts in re­search and devel­op­ment as driv­ing forces, Cas­cades con­tin­ues to de­liver the in­no­va­tive prod­ucts that cus­tomers have come to rely on, while con­tribut­ing to the well-be­ing of peo­ple, com­mu­ni­ties and the en­tire planet.

Michelle Ann Cormier, Mar­tin Cou­ture, Louis Gar­neau, Ge­orges Ko­bryn­sky, Alain Le­maire, Pa­trick Le­maire, Sylvie Le­maire, David Ly­man McAus­land, Elise Pel­letier, Mario Plourde, Lau­rence G Sel­lyn, Sylvie Va­chon

(CAS) Shares: 94,314,599 (In­dus­tri­als & Ma­te­ri­als)

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