#Canada #Richmond #Cascades Inc. #Crown Paper #Richmond BC

Cascades Finalizes Strategic Sale

Cascades Inc. has announced a significant business move, as it sells its Richmond, British Columbia, corrugated packaging facility to Crown Paper Group for a total of $65.5 million. This transaction, which encompasses real estate assets along with necessary working capital adjustments and certain liabilities, is expected to finalize soon contingent upon normal closing conditions and adjustments.

The decision to sell the Richmond plant stems from Cascades’ overarching goal to optimize its operational framework and reduce debt burdens. According to company officials, the Richmond facility, despite its strategic geographic location, did not integrate seamlessly into Cascades’ existing operational network. However, the plant aligns perfectly with Crown's current operational footprint, thereby enhancing its capabilities in the Pacific Northwest and Western Canada.

A Partnership Built on Shared Goals

Crown Paper Group, with nearly a century of experience in the region and a well-established presence through its integrated containerboard mill in Port Townsend, Washington, is poised to leverage the Richmond plant to enhance its offerings. The acquisition represents a milestone in Crown’s ongoing expansion strategy, allowing for better integration of its mill and box operations. The CEO of Crown Paper Group, Rob Kreizenbeck, expressed enthusiasm about welcoming the Richmond team into the Crown family, ensuring continuity in service and a commitment to the local community.

Hugues Simon, Cascades' President and CEO, commented on the sale, stating, “This transaction aligns with our strategic objectives and allows us to monetize valuable real estate assets without materially impacting our cash flow profile within the Packaging sector.” He also thanked the Richmond employees for their contributions, wishing them success in their future endeavors. This appreciation underscores Cascades' commitment to supporting its workforce through the transition.

A Future Focused on Sustainability and Growth

Cascades has been a leader in sustainable solutions since its inception in 1964, providing innovative packaging, hygiene products, and recovery solutions. The firm employs approximately 9,500 individuals across a vast North American network of operational facilities, driven by a commitment to environmental stewardship and social responsibility. The decision to sell the Richmond facility resonates with this ethos, as it permits Cascades to redirect its resources toward its core markets while maintaining a focus on profitability and operational efficiency.

Conversely, Crown Paper Group has positioned itself as a preeminent player within the region’s containerboard market. The integration of the Richmond plant into their operations will aid in delivering improved service and product offerings to their long-standing customers.

Conclusion

This transaction is more than just a sale; it represents a strategic realignment for both companies, aiming to enhance operational performance and achieve sustainable growth. Cascades’ decision reflects a broader commitment to focus resources on its key markets, whilst Crown Paper Group looks to expand its reach and service capabilities in British Columbia. As the ink dries on this agreement, stakeholders from both companies eagerly anticipate the benefits this transition brings not only for the businesses but also for the communities they serve.