December 07, 2018
By P&PC Staff
December 7, 2018 – Cascades has acquired two manufacturing plants in the United States for US$37.4 million that will allow the company to double its production capacity of ecological packaging manufactured in moulded pulp.
The manufacturing plants are Urban Forest Products and Clarion Packaging, respectively located in Brook, Indiana and Clarion, Iowa – which are two of the top three egg-producing states in the U.S.
The plants produce moulded pulp protective packaging that primarily serves the egg and quick-service restaurant industries, and have a combined workforce of just over 150 employees.
Cascades also acquired a majority interest in Falcon Packaging, a leader in the distribution of egg packaging which has 31 employees in Ohio, Iowa and Georgia. Combined, these three companies have consolidated sales that exceed US$110 million annually.
“These acquisitions give us the opportunity to improve Cascades’ position in the strategic fresh protein and food services packaging markets,” says Mario Plourde, Cascades president and CEO. “They are also in line with our objective to expand our moulded pulp activities, which produce a recycled, recyclable, compostable and biodegradable packaging product that offers highly interesting opportunities against a backdrop of expanding interest in the circular economy. The value of this transaction is in line with current Cascades trading multiple and will be accretive to net earnings.”
“The quality of the acquired assets and their complementary geographical positioning with our existing plants that manufacture moulded pulp packaging will allow us to improve the service we provide to our customers, and support our innovation initiatives,” Luc Langevin, president and chief operating officer of Cascades Specialty Products Group, adds. “With four moulded pulp plants efficiently spread out across North America, Cascades will build synergy, improve the distribution of production volumes, and allow certain sites to specialize.”