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Cascades Closes Acquisition of Orchids Paper Products Assets
Monday 16 September 2019

16 September 2019 - Canadian packaging and tissue products maker Cascades (TSX: CAS) has closed the acquisition of certain of the assets of Orchids Paper Products in proceedings before the United States Bankruptcy Court for the District of Delaware, the company said.

Cascades agreement in such regard is subject to approval by the Bankruptcy Court at a hearing scheduled for July 1st.

The transaction, which will be completed for a cash consideration of USD 207m, will cover substantially all the company's assets, including the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain equipment and various of Orchid's Paper commercial arrangements with Fabrica de Papel San Francisco, S.A. de C.V., based in Mexicali, Mexico, and certain affiliates thereof.

Orchid Paper's integrated plants have an estimated parent roll capacity of up to 114,000 tons and an estimated converting capacity of up to 114,500 tons.

Additionally, Orchids Paper has an agreement with Fabrica providing access for up to 20,000 tons of converted products for the Western US market.

Orchids Paper has invested more than USD 240m in its assets and strategic supply arrangement with Fabrica over the past five years.

The acquisition will allow Cascades to accelerate the modernisation of its tissue asset base, reduce sub-contracting and transportation costs, and increase its geographical footprint to better serve its customers.

Founded in 1964, Cascades now employs 11,000 women and men across a network of over 90 facilities in North America and Europe.
Details
Date Published: 16/09/2019
Target: Orchids Paper Products/assets
Country: USA
Deal Size: 207m (USD)
Sector: Paper/Packaging/Office Supplies
Type: Corporate acquisition
Financing: Cash
Status: Closed
Vendor:
Buyer: Cascades
Comment:
Transaction will cover substantially all the company´s assets, including the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain equipment and various of Orchid´s Paper commercial arrangements with Fabrica de Papel San Francisco, S.A. de C.V., based in Mexicali, Mexico, and certain affiliates thereof.


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