Cascades has reached an agreement with Crown Paper Group to sell its corrugated packaging mill located in Richmond.
The transaction is valued at C$65.5 million, including real estate assets, and remains subject to customary working capital adjustments and closing conditions. Completion is expected in the coming days.
The divestment aligns with Cascades’ ongoing efforts to optimize its operational platform and reduce debt, while focusing capital allocation on its core strategic markets. Due to its geographic location, the Richmond facility offered limited integration potential within Cascades’ broader network, but fits well within Crown Paper Group’s existing industrial footprint in Western Canada and the Pacific Northwest.
Crown operates a fully integrated containerboard mill in Port Townsend, along with multiple converting plants and distribution centers. The acquisition is expected to strengthen Crown’s vertical integration, enabling a more comprehensive offering of paper supply, packaging products, and related services.
Both companies indicated they will work closely to ensure an orderly transition for employees, customers, and suppliers. Crown has also committed to continuing investments at the Richmond site and to retaining the expertise of the existing workforce.
“This transaction supports our strategic objectives while preserving the long-term prospects of the Richmond mill,” said Hugues Simon, President and CEO of Cascades. “It allows us to monetize valuable real estate assets without materially affecting the cash flow profile of our packaging business.”
For Crown, the acquisition represents a further step in its growth strategy. Rob Kreizenbeck, CEO of Crown Paper Group, said the deal reinforces the company’s ability to integrate paper manufacturing and box production in order to expand its service offering and product range for customers in the region.
Founded in 1964, Cascades develops and manufactures sustainable packaging and hygiene solutions. The company employs approximately 9,500 people across nearly 65 operating facilities in North America and is listed on the Toronto Stock Exchange under the symbol CAS.
Source: Cascades
