Green packaging and tissue paper products manufacturer Cascades has signed an agreement with H.I.G Capital subsidiary Rolland Enterprises to sell its fine papers activities for around $39.5m.
The divestment includes Rolland Division and CTC Converting Center in Saint-Jérem, as well as Fibres Breakey in Sainte-Hélène-de- Breakeyville.
Established in 1882, Rolland Division was acquired by Cascades in 1992 and is an uncoated fine papers and security papers plant.
Constructed in 1998, CTC Converting Center is a fine papers processing and distribution plant, and Fibres Breakey is a de-inked bleached kraft pulp manufacturing plant founded in 1985.
Following the sale, the three units employing 425 workers will operate under a new company name Rolland Enterprises, according to Cascades.
Under the terms of the transaction, Cascades will support the new owner for the procurement of waste paper.
Cascades president and CEO Mario Plourde said the company has adopted a strategic orientation to ensure growth in the packaging, tissue papers and recovery sectors.
"The decision announced today will allow us to reduce debt and further focus our resources in these strategic sectors," Plourde added.
Cascades Specialty Products Group president and COO Luc Langevin said, "Cascades has found in H.I.G. Capital a purchaser willing to maintain the operations and ensure the development of the units.
The company noted that its Specialty Products Group will continue to focus its development in the industrial and consumer packaging products sectors in addition to recycling.
Cascades, which was founded in 1964, produces converts and markets packaging and tissue products that are composed of recycled fibers primarily.
