Cascades has agreed to sell its corrugated packaging plant in Richmond, B.C., to Crown Paper Group for $65.5 million, subject to working capital adjustments and the assumption of liabilities.
Given its location, the plant offered limited integration potential with the rest of Cascades’ network, but aligns with Crown’s strategy to expand its operational footprint in the region. Crown has operated an integrated containerboard mill in nearby Port Townsend, Wash., for nearly 100 years and also has a long-established presence within British Columbia.
The transaction is expected to be completed in the coming days, subject to customary closing conditions and adjustments. Cascades says it will work closely with Crown to support an orderly transition with customers, employees and suppliers.
“This transaction allows us to monetize valuable real estate assets while not impacting materially the cash flow profile of our packaging sector,” says Cascades’ president and CEO, Hugues Simon. “We thank all Richmond employees for their contribution and wish them the best for the future.”
“Acquiring the Richmond box plant is an important milestone in furthering the expansion and integration of our operations,” says Crown’s CEO, Rob Kreizenbeck. “We are excited to welcome the Richmond team very soon and look forward to building on the plant’s strong legacy.”
Crown, part of Atlas Holdings, includes Port Townsend Paper Company (PTPC), Crown Packaging and Boxmaster and also operates locations in Kelowna, B.C., Edmonton and Calgary.
