July 19, 2011
Cascades Completes the Acquisition of Papersource
KINGSEY FALLS, QC, July 19, 2011 /PRNewswire/ - Cascades Inc. (TSX:
CAS), a leader in recovery and in green packaging and tissue paper
products, announces that it will purchase the remaining 50% of shares
that it does not hold in the company Papersource Converting Mill Corp.
(Papersource), located in Granby.
The cash purchase price for the acquired shares will be approximately
$60 million and Cascades will assume a debt of approximately $25
million, for an approximate corresponding company value of $145
million. The transaction, expected to be signed in mid-September, is
contingent upon the approval of the Competition Bureau. The 100%
ownership of Papersource will have a positive impact on Cascades' net
Cascades Tissue Group: "With sales of more than $130 million and a
consumption of more than 90,000 tons per year, the acquisition of the
remaining shares of Papersource will increase the level of integration
of Cascades Tissue Group to more than 70% and will thus strengthen its
positioning in the Away-from-Home segment in Canada and in the United
"This announcement confirms the firm intention of Cascades to be a key
player in the tissue paper sector in North America", said Alain
Lemaire, President and Chief Executive Officer of Cascades.
Papersource is a tissue paper converting plant that is at the cutting
edge of technology, which essentially manufactures products for the
Away-from-Home market. It employs more than 160 employees.
Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Company employs close to 11,000 employees, who work in more than 100 units located in North
America and Europe. Its management philosophy, its more than 45 years
of experience in recycling and its continued efforts in research and
development are strengths that enable Cascades to create new products
for its customers. Cascades' shares trade on the Toronto Stock
Exchange, under the ticker symbol CAS.
Certain statements in this release, including statements regarding
future results and performance, are forward-looking statements (as such
term is defined under the Private Securities Litigation Reform Act of
1995) based on current expectations. The accuracy of such statements is
subject to a number of risks, uncertainties and assumptions that may
cause actual results to differ materially from those projected,
including, but not limited to, the effect of general economic
conditions, decreases in demand for the Company's products, increases
in raw material costs, fluctuations in selling prices and adverse
changes in general market and industry conditions and other factors
listed in the Company's Securities and Exchange Commission filings.
SOURCE CASCADES INC.