Cascades acquires assets of 2 recycling companies; one in U.S., one in Canada

KINGSEY FALLS, Que. - Cascades Inc. (TSX:CAS) is acquiring assets from two companies that will solidify the Quebec-based package and tissue maker's position as Canada's largest paper recycler and among the leaders in North America.

KINGSEY FALLS, Que. - Cascades Inc. (TSX:CAS) is acquiring assets from two companies that will solidify the Quebec-based package and tissue maker's position as Canada's largest paper recycler and among the leaders in North America.

Terms of the deal under which Cascades subsidiary Metro Waste Paper Recovery acquired the Canadian assets of Sonoco Recycling, as well as the recovery assets of Yorkshire Paper Corp., were not disclosed in Tuesday's announcement.

Both Sonoco Recycling and Yorkshire Paper provide the retail sector with on-site collection services of recyclable materials, such as corrugated containers, paper and plastics.

"These acquisitions are in line with our strategic objective of growing our business in Canada and in the northeastern United States," said Metro Waste chief executive Al Metauro.

Besides better enabling Metro Waste to serve its customers, "the materials recovered will supply our Cascades mills and other North American customers," Metauro said.

Yorkshire Paper Corp. operates in New England and in upstate New York, collecting almost 24,000 tonnes of recycled fibre each year. In 2008, Sonoco Recycling collected 190,000 tonnes of recycled fibre all across Canada.

Once completed, these transactions will enable Metro Waste to increase its collection capacity by 20 per cent, or about 1.4 million tonnes a year.

Mario Plourde, president of Cascades Specialty Products Group, commented that recycled fibres represent more than two-thirds of the raw material used by Cascades.

"The acquisitions will therefore help to further ensure a steady supply of raw material to Cascades' mills, while providing more room to grow in the development of environmentally sustainable products," Plourde said.

Cascades' 19 recovery facilities supply more than half of the 2.2 million tons of recycled fibre used by Cascades' manufacturing mills.



Metro Waste Paper Recovery Inc., a member of the Cascades Group of companies, operates 17 recovery facilities across Canada and the northeastern United States.

Cascades produces, converts and markets packaging and tissue products comprised mainly of recycled fibres. It employs almost 13,000 employees in more than 100 units in North America and Europe.

Cascade shares were up four cents at $7.79 in early afternoon trading Tuesday on the Toronto Stock Exchange.

 
 
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