Cascades Inc., Kingsey Falls, Que., Canada, will sell its fine paper operations for $39.5 million to Rolland Enterprises Inc., a subsidiary of H.I.G. Capital, Miami, Fla., USA. The units to be sold include: the company’s Rolland Division, an uncoated fine papers and security papers mill located in Saint-Jérôme, Que. (founded in 1882, it was acquired by Cascades in 1992); the CTC Converting Centre, a fine papers processing and distribution plant built in 1998, also located in Saint-Jérôme; and Fibres Breakey, a deinked bleached kraft pulp mill located in Sainte-Hélène-de-Breakeyville (founded in 1985).

The three units employ some 425 workers and will now operate under a new company name—Rolland Enterprises Inc. The current management team will remain in place to ensure an orderly transition. According to the agreement, Cascades will continue to work with the new owner for the procurement of wastepaper, and to ensure a smooth transfer of ownership for employees, customers, and suppliers.

 

"Despite the positive contribution of these units to Cascades' results, we have adopted a strategic orientation emphasizing growth in the packaging, tissue papers, and recovery sectors. The decision announced today will allow us to reduce debt and further focus our resources in these strategic sectors," emphasized Cascades President and CEO Mario Plourde.

"Cascades has found in H.I.G. Capital a purchaser willing to maintain the operations and ensure the development of the units," said Luc Langevin, president and COO of Cascades Specialty Products Group. "It is not without regret that we part with these business units, however, given our stated strategic orientation, we believe this transaction will allow them to better pursue their development initiatives and thereby continue to promote the Rolland brand all around the world. For its part, the Specialty Products Group of Cascades will continue to concentrate its development in the industrial and consumer packaging products sectors as well as in recycling."

Founded in 1964, Cascades produces, converts, and markets tissue and packaging products that are made mainly of recycled fibers. The company has more than 12,000 employees who work in more than 100 production units in North America and Europe.