Cascades has reached an agreement to sell its Flexible Packaging plant activities to Five Star Holding based in Houston, Texas. The $31 million transaction is effective immediately. Cascades' will retain ownership of the site real estate.
Located in Mississauga, Ontario, Flexible Packaging is Cascades' only plant that manufactures printed flexible plastic packaging and films. The Flexible Packaging operations employs 45 people, all of which will be retained by Five Star at closing.
"Today's decision will allow us to reduce our debt and support the optimization of our operational platform to grow our strategic sectors. We are pleased to have found in Five Star a buyer committed to maintaining and developing the plant's activities," said Hugues Simon, President and Chief Executive Officer of Cascades. "We wish to thank our colleagues at Cascades Flexible Packaging for their contribution and look forward to continuing our collaboration with them as a one of their customers."
Cascades will work closely with Five Star to ensure a smooth ownership transition for employees, customers, and suppliers. The transaction includes a supply agreement between the two parties to ensure the continued production and supply of the flexible film that is used by Cascades' Tissue and Packaging sectors.
“This acquisition will accelerate our growth in sustainability focused packaging for consumer, food and beverage markets in Canada and throughout North America,” said Alex Huis In 'T Veld, CEO of Five Star.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 9,500 talents across a network of 65 operating facilities in North America.
Five Star manufactures and designs a broad range of flexible packaging, printed films, and sustainability programs for the Pet Care, Food & Beverage, and Consumer & Industrial markets. The company is headquartered in Houston, Texas, with additional manufacturing locations in Canada, Mexico, and Honduras.
