Cascades Inc. has announced that it is exercising its option to purchase the interest of the Caisse de dépôt et placement du Québec (CDPQ) in Greenpac Holding LLC.
CDPQ owns a 20.2% interest in Greenpac, a containerboard mill located in Niagara Falls, New York. The expected purchase price is approximately $93 million, and the transaction is expected to close January 3rd, 2020.
As of today, Cascades owns a 66.1% interest in Greenpac, a joint venture created in partnership with CDPQ, Jamestown Container Companies, and Containerboard Partners.
“This transaction is an important part of Cascades’ strategic plan, and will improve our available cash flow,” says Mario Plourde, president and CEO of Cascades. “This decision is another step in a series of actions that we have carried out over the past few years to improve our position in an increasingly competitive market. I would like to thank CDPQ for its support in this important project,” says Plourde.
Greenpac manufactures a lightweight liner board — made with 100% recycled fibers — on a machine with an annual production capacity of 540,000 short tons. The mill currently employs 152 people.