Cascades has agreed to sell its corrugated-packaging plant in Richmond, B.C., to Crown Paper Group for $65.5 million.

The transaction includes the real estate assets and is subject to working capital adjustments and the assumption of certain liabilities, said Cascades. The deal is expected to close in the coming days, pending customary closing conditions and adjustments. Cascades said the sale supports its efforts to optimize operations and reduce debt, noting the Richmond facility offered limited integration within its broader network but aligns well with Crown’s regional footprint.

“Cascades is committed to improving profitability and optimizing its operational platform by allocating capital to its core markets,” said Hugues Simon, CEO of Cascades. “This transaction with Crown Paper Group supports the achievement of Cascades’ strategic objectives while preserving the prospects of the Richmond plant. It allows [us] to monetize valuable real estate assets while not impacting materially the cash flow profile of our packaging sector.”

The plant’s workers are slated to join Crown Paper, with Cascades helping to ensure an orderly transition. Crown Paper has a long-established presence in B.C., and has operated an integrated containerboard mill in Port Townsend, Wash., for nearly a century. According to Cascades, said the buyer is positioned to provide integrated paper supply and complementary products and services, supporting a smooth transition for employees, customers and suppliers.

“Acquiring the Richmond Box Plant is an important milestone in Crown’s continued expansion, furthering the integration of our mill and box operations to provide our customers with exceptional service and product offerings,” said Rob Kreizenbeck, CEO of Crown Paper. “We are excited to welcome the Richmond team to Crown very soon and look forward to building on the plant’s strong legacy of service and craftmanship.”

Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions, employing 9,500 people at 65 operating facilities across North America.

Crown Paper Group is a leading regional integrated containerboard business. The firm operates an integrated containerboard mill, two converting facilities and three company‑owned distribution centres in Pacific Northwest and Western Canada.

Its holdings include Port Townsend Paper Company, Crown Packaging and Boxmaster.

Photo: Crown Paper