Packaging firm Cascades has acquired four containerboard packaging plants in Ontario, Canada from Coyle family.
The firm has also acquired 33% ownership stake in Tencorr, a manufacturer of sheet stock for box producers, as well as increased equity stake in Greenpac Mill.
As part of the deal, Cascades also acquired an additional interest in Containerboard Partners, one of shareholders in Greenpac. This increases Cascades’ share in Greenpac from 62.5% to 66.1%.
Cascades president and CEO Mario Plourde said: "We are very pleased to expand our presence in Ontario and increase our stake in Greenpac for the second time this year.
“These transactions align perfectly with our vision and strategy for our containerboard activities.”
The four plants acquired by Cascades include: McLeish Corr -a-Box Packaging & Design in Etobicoke, Ontario; Brown Packaging in Burlington, Ontario; Coyle Corrugated Containers in Scarborough, Ontario as well as Coyle Packaging (Peterborough) in Peterborough, Ontario.
Cascades said that the transaction expands its presence in Ontario and also increases production capacity by 500 million square feet annually.
The transaction is valued at $49m, of which $21m is related to stake acquired in Greenpac and Tencorr while $28m is related to the acquisition of the containerboard packaging plants, including $4m debt.
Cascades Containerboard Packaging president and COO Charles Malo said: "These new assets will support our growth by providing us with increased capacity and flexibility.
“This transaction will also enable us to better serve our customers as we will be better positioned to provide them with the packaging solutions they seek.”
