Cascades agrees to sell Richmond corrugated packaging plant to Crown Paper Group

Cascades announced that it has entered into an agreement with Crown Paper Group for the sale of its corrugated packaging plant located in Richmond, British Columbia, Canada. The transaction value amounts to USD 65.5 million, including real estate assets, and remains subject to customary working capital adjustments and the assumption of certain liabilities.

According to Cascades, the divestment formed part of the group’s ongoing efforts to optimise its industrial footprint and reduce debt. Due to its geographic location, the Richmond plant offered limited integration and synergy potential within Cascades’ broader operational network, while aligning well with Crown Paper Group’s existing footprint and growth strategy in the region.

Crown Paper Group has a long-established presence in British Columbia and operates an integrated containerboard mill in Port Townsend, Washington, with nearly a century of operating history. The acquisition was described as a strategic fit, enabling Crown to expand its regional operations, leverage integrated paper supply and offer complementary products and services. The company stated that it intended to continue investing in the Richmond plant and its workforce, while maintaining service continuity for customers. Cascades confirmed that it would work closely with Crown to ensure an orderly transition for employees, customers and suppliers.

“Cascades is committed to improving profitability and optimising its operational platform by allocating capital to its core markets. This transaction with Crown Paper Group supports the achievement of Cascades’ strategic objectives while preserving the prospects of the Richmond plant. It allows us to monetise valuable real estate assets without materially impacting the cash flow profile of our Packaging sector,” said Hugues Simon, President and Chief Executive Officer of Cascades.

“Acquiring the Richmond box plant represents an important milestone in Crown’s continued expansion, further strengthening the integration of our mill and box operations to deliver exceptional service and product offerings to our customers,” said Rob Kreizenbeck, Chief Executive Officer of Crown Paper Group. “We look forward to welcoming the Richmond team and building on the plant’s strong legacy in the region.”