Canadian firm Cascades has purchased four containerboard packaging plants in Ontario, along with an ownership position in Tencorr.
The company has also increased its stake in US-based firm Greenpac Mill.
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The total cost of the transaction amounts to $49m, of which $21m is related to the increased shares in Greenpac and the company’s new ownership in Tencorr.
The containerboard packaging plants were purchased for an amount of $28m, including an assumed debt of $4m.
Cascades president and CEO Mario Plourde said: “We are very pleased to expand our presence in Ontario and increase our stake in Greenpac for the second time this year.
“These transactions align perfectly with our vision and strategy for our containerboard activities.”
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By GlobalDataThe containerboard packaging plants acquired by the company focus on the production of boxes and speciality items.
The four Ontario plants are McLeish Corr-a-Box Packaging & Design in Etobicoke, Brown Packaging in Burlington, Coyle Corrugated Containers in Scarborough and Coyle Packaging in Peterborough.
Cascades containerboard packaging president and chief operating officer Charles Malo said: “These new assets will support our growth by providing us with increased capacity and flexibility.
“This transaction will also enable us to better serve our customers as we will be better positioned to provide them with the packaging solutions they seek.”
The current transaction will enable Cascades to increase its manufacturing capacity by 500 million square feet each year.
The packaging plants also have procurement agreements with Greenpac.
