Cascades divests Mississauga flexible packaging plant to U.S. buyer for US$22.23M

USA – Eco-friendly packaging firm Cascades Inc. has finalized the sale of its flexible packaging operations in Mississauga, Ontario, to Texas-based Five Star Holding in a transaction valued at US$22.23 million. 

The deal, which became effective right away, marks a shift for Cascades as it streamlines its manufacturing footprint.

The Mississauga site stands as the only facility where Cascades has produced printed flexible plastic packaging and films. 

Under the terms, Cascades keeps control of the property itself, while the buyer takes over the production activities. 

This arrangement ensures continued supply of flexible films needed for Cascades’ tissue and other packaging lines, according to company details.

All 45 staff members in the flexible packaging unit will move over to Five Star, preserving jobs at the location. 

The move fits into Cascades’ broader strategy to concentrate resources on key segments like containerboard and tissue products.

Hugues Simon, president and CEO of Cascades, commented in a statement that the sale helps cut down debt levels and refine the company’s setup for expansion in priority areas. 

He added that Five Star emerged as a strong partner eager to sustain and expand the site’s output.

On the buyer side, Five Star Holding aims to build out its offerings in sustainable packaging for consumer goods, food, and beverage sectors across Canada and North America. 

Alex Huis In ‘T Veld, CEO of Five Star, said the purchase speeds up their entry into these markets with a focus on eco-conscious materials.

This transaction follows a pattern of adjustments at Cascades. Back in July 2025, the company shut down its corrugated medium mill in Niagara Falls, New York, to sharpen its production efficiency in packaging. 

That closure affected local operations but aligned with ongoing tweaks to the manufacturing network.

Founded in 1964, Cascades runs 65 plants throughout North America and employs around 9,500 workers. 

The firm has long emphasized recycled content in its products, with flexible packaging forming a niche part of its portfolio until now.

Industry watchers note that such sales highlight growing interest in specialized flexible solutions amid rising demand for lightweight, recyclable options in food and consumer sectors. 

Five Star, known for its work in barrier films and laminates, now gains a foothold in Canadian production, potentially aiding regional supply chains.

The deal arrives as global packaging firms navigate pressures from plastic reduction goals and supply volatility. 

Cascades’ action frees up capital for investments in fiber-based alternatives, a segment where it holds significant capacity.

Overall, the Mississauga handover keeps production humming without interruption, ensuring steady film deliveries to Cascades’ downstream uses. 

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