Cascades to divest Richmond corrugated packaging plant to Crown Paper Group

CANADA – Cascades has agreed to sell its corrugated packaging facility in Richmond, British Columbia, to Crown Paper Group in a transaction valued at C$65.5 million (US$48.4 million), as the Canadian packaging producer continues to streamline its asset base and reduce debt.

The transaction includes the sale of the plant’s real estate, customary working capital adjustments, and the transfer of certain liabilities to Crown.

Completion is expected in the coming days, subject to standard closing conditions and final adjustments.

Cascades president and CEO Hugues Simon said the divestment supports the company’s strategy of improving profitability and optimizing its operational platform by focusing capital on core markets.

“This transaction with Crown Paper Group supports the achievement of Cascades’ strategic objectives while preserving the prospects of the Richmond plant,” Simon said.

“It allows us to monetize valuable real estate assets while not materially impacting the cash flow profile of our packaging sector.”

In a statement, Cascades noted that the Richmond facility’s geographic position limited its integration and synergy potential within the company’s broader operational network.

However, the plant aligns well with Crown Paper Group’s existing footprint in British Columbia, enabling the buyer to expand its regional operations.

Cascades described Crown as a “natural long-term fit” for the Richmond operation, citing its established presence in the province.

The company added that it will work closely with Crown to ensure an orderly transition for customers, employees, and suppliers.

Crown Paper Group CEO Rob Kreizenbeck said the acquisition marks a key milestone in the company’s growth strategy.

“Acquiring the Richmond Box Plant is an important step in Crown’s continued expansion, furthering the integration of our mill and box operations to provide customers with exceptional service and product offerings,” he said.

Kreizenbeck added that Crown looks forward to welcoming the Richmond team and building on the plant’s legacy of service and craftsmanship.

The sale follows Cascades’ divestment of its flexible packaging operations in Mississauga, Ontario, in October last year.

That US$22.23 million transaction, which became effective immediately, marked Cascades’ exit from printed flexible plastic packaging and film production.

Under the agreement, Cascades retained ownership of the Mississauga property while the buyer, Five Star Holding, assumed production activities, ensuring continued supply of flexible films for Cascades’ tissue and other packaging businesses.

Together, the transactions reflect Cascades’ broader efforts to rationalize its manufacturing footprint and redeploy capital toward higher-return, strategically aligned operations.

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