Cascades Sells Richmond Packaging Plant to Crown Paper Group for $65.5 Million

Cascades Inc. (TSX: CAS) has entered into an agreement with Crown Paper Group for the sale of its corrugated packaging plant in Richmond, British Columbia. The transaction totals $65.5 million, including real estate assets, subject to working capital adjustments and the assumption of certain liabilities. Completion is expected in the coming days, pending customary closing conditions.​

This sale aligns with Cascades' efforts to optimize operations and reduce debt. The Richmond plant's location limited integration opportunities within Cascades' network but fits Crown's regional operations, enhancing its presence. Crown, with deep roots in British Columbia and a nearly century-old integrated containerboard mill in Port Townsend, Washington, will provide seamless paper supply and complementary services.​

Crown anticipates welcoming the Richmond workforce, maintaining customer relationships, and investing in the facility. Cascades will assist with transitions for customers, employees, and suppliers. Hugues Simon, Cascades' President and CEO, stated, "Cascades is committed to improving profitability and optimizing its operational platform by allocating capital to its core markets. This transaction supports our strategic objectives while preserving the plant's prospects."​

Rob Kreizenbeck, Crown Paper Group's CEO, remarked, "Acquiring the Richmond Box Plant is an important milestone in Crown's continued expansion, furthering the integration of our mill and box operations." Founded in 1964, Cascades employs nearly 9,500 people across 65 North American facilities, focusing on sustainable packaging solutions. Crown operates an integrated containerboard mill, converting facilities, and distribution centers in the Pacific Northwest and Western Canada.​