Cascades, a leader in the recovery and manufacturing of packaging and tissue products, recently completed previously announced, the acquisition of all assets of Orchids Paper Products. As mentioned in the July 1st press release, this transaction involved a cash consideration of US $ 207M. Assets include Barnwell Mills in South Carolina, Pryor Oklahoma, as well as some assets and amended supply and commercial agreements with Fabrica de Papel San Francisco , SA de CV (Fabrica), based in Mexicali, Mexico, and some of its related companies.
Mr. Mario Plourde , President and Chief Executive Officer of Cascades, commented: "I am very pleased to welcome the employees of Pryor and Barnwell to the Cascades family today . This acquisition, without a doubt, will help accelerate the modernization of our tissue business in the United States while strengthening our geographic position in the retail market. This transaction therefore creates value for our clients, but also for our shareholders with an annual contribution to EBITDA of approximately US $ 45M from 2021. "
Mr. Jean-David Tardif, President and Chief Operating Officer of Cascades Tissue Group, said: "Today's announcement underscores our commitment to increasing our ability to serve our customers and to position Cascades, in the tissue paper segment, with a view to long-term growth. Thanks to our well-stocked backlog, we will be able to quickly benefit from maximum use of the acquired facilities. "
In the last five years, Orchids Paper has invested more than US $ 240M in modern production and conversion equipment for its factories and has established a strategic partnership with Fabrica. Orchids Paper's integrated plants have a capacity of approximately 114,000 tonnes of parent reels and a conversion capacity of approximately 114,500 tonnes. The agreement with Fabrica provides access to 20,000 tonnes of converted products destined for the Western US market. In recent weeks, certain aspects of this agreement have been renegotiated to the satisfaction of both parties.
As part of this transaction, CIBC Capital Markets is acting as exclusive financial advisor and K & L Gates as counsel for Cascades.
SOURCE: Cascades Inc.