Cascades Sells Flexible Packaging Division to Five Star Holding for $31 Million

Cascades Transitions Flexible Packaging Operations to Five Star Holding

In a significant move announced on October 8, 2025, Cascades Inc. (TSX: CAS) has reached an agreement to sell its Flexible Packaging plant activities to Five Star Holding, based in Houston, Texas, for a total of CAN$31 million. This transaction, effective immediately, allows Cascades to retain ownership of the real estate associated with the facility located in Mississauga, Ontario.

The Flexible Packaging division marks Cascades' only plant dedicated to the production of printed flexible plastic packaging and films. The decision to sell comes as part of Cascades' broader strategy to optimize its operations and enhance long-term value for its clients. In their quest for continuous improvement, the company has found a buyer possessing the necessary industry expertise and a comprehensive asset network, which positions the plant for future growth and development.

As a result of the sale, all 45 employees currently working at the Flexible Packaging operations will be retained by Five Star at the closing of the deal. Cascades has expressed a commitment to facilitating a seamless transition for employees, customers, and suppliers. Additionally, a supply agreement has been established to ensure that the production and supply of flexible films, which are utilized across Cascades' Tissue and Packaging sectors, will continue uninterrupted.

Hugues Simon, President and CEO of Cascades, expressed optimism about the sale's implications: “Today's decision will allow us to reduce our debt and support the optimization of our operational platform to grow our strategic sectors. We are pleased to have found Five Star as a buyer committed to maintaining and developing the plant's activities. I want to thank our colleagues at Cascades Flexible Packaging for their contributions and look forward to continuing our collaboration with them as a valued customer.”

Alex Huis In 'T Veld, CEO of Five Star, reflected on the acquisition, saying, “We look forward to welcoming the team at Cascades Flexible Packaging to the Five Star family. There was an immediate connection between our teams around manufacturing culture and shared focus on quality and safety. This acquisition will accelerate our growth in sustainability-focused packaging for consumer, food, and beverage markets in Canada and throughout North America.”

Since its inception in 1964, Cascades has been dedicated to providing sustainable, innovative, and value-added solutions in packaging, hygiene, and recovery solutions. With a workforce of approximately 9,500 employees across 65 facilities in North America, the company is recognized for its participative management approach and commitment to recycling. Its ongoing investments in research and development ensure that customers receive the quality products they depend on, while Cascades also strives to contribute positively to the well-being of people and the planet.

On the other hand, Five Star Holding specializes in manufacturing and designing a diverse array of flexible packaging solutions, printed films, and sustainability programs aimed at markets such as Pet Care, Food & Beverage, and Consumer & Industrial sectors. With its headquarters in Houston and additional locations in Canada, Mexico, and Honduras, Five Star is deeply integrated, managing processes from extrusion and recycling to printing and converting, thus ensuring reliability in supply for consumer packaged goods companies.

This acquisition is set against a backdrop of surging demand for environmentally friendly packaging solutions, making Five Star's new venture crucial in aligning with market shifts toward sustainability.

Conclusion

The shift of Cascades' Flexible Packaging operations to Five Star not only marks a promising new chapter for the employees and the plant but also reinforces both companies' commitments to advancing sustainability in packaging. As they embrace this transition, stakeholders can look forward to an intensified focus on quality, efficiency, and innovative solutions in packaging._