Cascades acquires Orchids Paper Products assets for US$207m


Cascades acquisition of Orchids Paper Products assets : Cascades, a Canadian packaging and tissue producer, has acquired all of the assets of US-based Orchids Paper Products for a cash consideration of US$207 million, financed by the company’s credit facilities, as per the latest packaging industry news.

Orchids Paper Products specializes in manufacturing a range of products – from paper towels, bath tissue, and paper napkins to away from home, branded, and private label – for retail and commercial markets.

The acquired assets include the Barnwell, South Carolina, and Pryor, Oklahoma operations, as well as certain other assets, the supply and other commercial arrangements with Fabrica de Papel San Francisco, based in Mexicali, Mexico, and certain of its affiliates.

Cascades acquires Orchids Paper Products assets

Cascades acquires Orchids Paper Products assets. Photo courtesy of Cascades inc.

Commenting on Cascades acquisition of Orchids Paper Products assets, Mario Plourde – president and CEO of Cascades, said: “Without a doubt, this acquisition will accelerate the modernization of Cascades’ U.S. tissue platform while strengthening the geographic and operational positioning of the Company’s retail tissue segment.

See also  L Brands to sell 55% stake in Victoria’s Secret to Sycamore Partners for $525m

“This transaction creates value for both our clients and for our shareholders with an expected annual EBITDA contribution of approximately US$45 million beginning in 2021.”

The integrated plants of Orchids Paper Products have an estimated parent roll capacity of up to 114,000 tons and up to an estimated 114,500 tons of converting capacity, according to Cascades.

See also  Longroad Energy sells $400m Phoebe Solar Project in Texas to Innergex

Orchids Paper Products, which has an agreement with Fabrica, invested over US$240 million in the plants’ modern production and converting equipment and strategic partnership over the last five years.

The agreement with Fabrica provides access for an additional 20,000 tons of converted products for the Western U.S. market.

Jean-David Tardif – president and COO, Cascades Tissue Group, commenting on Cascades acquisition of Orchids Paper Products assets, said: “Today’s announcement highlights our commitment to increase our ability to serve our customers and position Cascades, in the tissue paper segment, with a view to long-term growth.”

See also  Wacker Chemical, H.M. Royal include SILPURAN silicones in partnership

With more than 90 facilities in North America and Europe, Cascades offers sustainable packaging, hygiene, and recovery solutions.

For more packaging industry news like Cascades acquisition of Orchids Paper Products assets, keep following Business News Today.

Share This