Cascades To Buy Atlantic Packaging Products Tissue Business
June 18, 2009
by Canadian Packaging Staff
It was recently announced that the Kingsley Falls, Que.-based Cascades Inc.—a leader in green packaging and tissue paper products utilizing recycled fibers—has reached an agreement to purchase the tissue business of Atlantic Packaging Products Ltd. located in east Toronto for approximately $60-million (US $54.1-million) in a move that is expected to increase Cascades recycled tissue capacity by 55,000 metric tons and increase its converting capacity by nearly 70,000 metric tons.
According to Alain Lemaire, president and CEO of Cascades, the acquisition while continuing to grow the company’s tissue business will also consolidate its leadership position in the development of green paper products.
“The tissue sector has proven itself to be recession resistant showing steady growth thru the economic cycles and we believe business perspectives for this sector will continue to be advantageous for us going forward, particularly in the area of recycled products where Atlantic brings us added expertise,” says Lemaire.
Suzanne Blanchet, president and CEO Cascades Tissue Group concurs, adding: “With this acquisition we will be better positioned not only to expand our production of eco-friendly products in Ontario where many of our important customers are based, but also to pursue the development of the Cascades brand there and elsewhere in Canada. Moreover, the addition of these assets to our existing business offers interesting opportunities for synergies in terms of logistics and production efficiencies.”
In commenting on the transaction, Irving Granovsky, chairman of Atlantic Packaging states: “We believe this is a sound strategic initiative that will allow us to concentrate on the development of our core business. With our already strong financial position being further strengthened by this transaction, we are excited at the opportunity to accelerate the company’s strategic growth plan.”
Granovsky says that while Atlantic Packaging did not see the tissue business as part of its future direction, he was confident that Cascades, with its strong commitment to the tissue business and their U.S. market affiliations, would continue to develop the Atlantic tissue operations.
John Cherry, president of Atlantic Packaging, says the sale is aligned with his company’s strategic growth plan. “We are committed to grow and expand our core businesses and we se this transaction as a winning solution to our customers, our employees and our stakeholders.
“During the approval process waiting period, Atlantic is committed to the continued operation of our tissue business as usual providing 100 per cent recycled tissue to our customers with product and service excellence.”
While the transaction is subject to the usual conditions, including the approval of the Competition Bureau, Cascades and Atlantic expect to complete the transaction within 15 days following the date such approval is obtained.
For more information, please visit www.cascades.com.