Cascades Inc., a company in the recovery and manufacturing of green packaging and tissue paper products, says it has reached an agreement with Rolland Enterprises Inc. for the sale of its fine papers activities in Canada for US$39.5 million.
The units covered by this transaction include:
– Rolland Division, an uncoated fine papers and security papers plant located in Saint-Jérôme, Canada.
Founded in 1882, it was acquired by Cascades in 1992.
– CTC Converting Centre, a fine papers processing and distribution plant built in 1998, also located in Saint-Jérôme.
– Fibres Breakey, a de-inked bleached kraft pulp manufacturing plant located in Sainte-Hélène-de-Breakeyville, Canada.
It was founded in 1985.
The three units employ about 425 workers and will now operate under a new company name—Rolland Enterprises Inc.
The current management team will remain in place in order to ensure an orderly transition.
Based on the terms of the transaction, Cascades will continue to work with the new owner for the procurement of waste paper, and to ensure a smooth transfer of ownership for employees, customers and suppliers.
“Despite the positive contribution of these units to Cascades’ results, we have adopted an orientation emphasizing growth in the packaging, tissue papers and recovery sectors,” says Cascades president and CEO Mario Plourde.
“The decision announced today will allow us to reduce debt and further focus our resources in these strategic sectors.”
“The Specialty Products Group of Cascades will continue to concentrate its development in the industrial and consumer packaging products sectors as well as in recycling.”