Kingsey Falls, Quebec based Cascades Inc. has announced that it has entered into an agreement with Crown Paper Group (Crown) for the sale of its corrugated packaging plant located in Richmond, British Columbia, for a total value of $65.5 million.
In view of Cascades’ commitment to optimize its operations and reduce its debt, the sale of the Richmond plant emerged as a mutually beneficial outcome for both Cascades and Crown. Given its geographic position, the Richmond plant offered limited integration and synergy potential within Cascades’ operational network, but aligns with Crown’s current footprint, expanding its operations.
With a long-established presence in British Columbia and nearly a century of operating an integrated containerboard mill in Port Townsend, Washington, Crown is a natural long-term fit for the Richmond plant, providing integrated paper supply and complementary product and service offerings. The transaction ensures a seamless transition to an operator with deep roots in British Columbia and a commitment to continued investment in the plant and its capable team.
“Cascades is committed to improving profitability and optimizing its operational platform by allocating capital to its core markets. This transaction with Crown Paper Group supports the achievement of Cascades’ strategic objectives while preserving the prospects of the Richmond plant. It allows to monetize valuable real estate assets while not impacting materially the cash flow profile of our Packaging sector,” said Hugues Simon, President and Chief Executive Officer of Cascades.
“Acquiring the Richmond plant is an important milestone in Crown’s continued expansion, furthering the integration of our mill and box operations to provide our customers with exceptional service and product offerings. We are excited to welcome the Richmond team to Crown and look forward to building on the plant’s strong legacy of service and craftmanship,” said Rob Kreizenbeck, Chief Executive Officer of Crown Paper Group.
