Cascades Acquires US-Based Moulded Pulp Packaging Assets for USD 37m.
M2 EQUITYBITES-December 11, 2018-Cascades Acquires US-Based Moulded Pulp Packaging Assets for USD 37m
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11 December 2018 - Canada-based green packaging and tissue products manufacturer Cascades Inc. (TSX: CAS) has acquired US moulded pulp packaging assets to double Cascades' production capacity of ecological packaging manufactured in moulded pulp, the company said.
The total cost of the transaction amounts to USD 37.4m.
Cascades said the acquired manufacturing plants are Urban Forest Products and Clarion Packaging respectively located in Indiana and Iowa.
The plants manufacture moulded pulp protective packaging that primarily serves the egg and quick service restaurant industries and have a combined workforce 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 USD 110m annually.
The company said 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 specialise.
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.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Dec 11, 2018|
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