Orchids Paper Products acquired by Cascade Manufacturing location at MAIP
12/16/2019
Cascades, a leader in the recovery and manufacturing of packaging and tissue products, recently completed the acquisition of the assets of Orchids Paper Products, a manufacturer and national supplier of consumer tissue products with a manufacturing location in Pryor, Oklahoma.
Cascades made the acquisition for a cash consideration of $207 million. The assets include the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain other assets, including amended supply and other commercial arrangements with Fabrica de Papel San Francisco, S.A. de C.V. ("Fabrica"), based in Mexicali, Mexico, and certain of its affiliates.
Cascades President and CEO, Mario Plourde, commented, "I am very pleased to welcome Pryor and Barnwell employees to the Cascades family. Without a doubt, this acquisition will accelerate the modernization of Cascades' U.S. tissue platform while strengthening the geographic and operational positioning of the company's retail tissue segment. This transaction creates value for both our clients and for our shareholders with an expected annual EBITDA contribution of approximately $45 million beginning in 2021."
Cascades Tissue Group President and COO Jean-David Tardif noted, "This announcement highlights our commitment to increasing our ability to serve our customers and position Cascades, in the tissue paper segment, with a view to long-term growth. Thanks to our strong order book, we can quickly take advantage of maximizing the utilization rate of the acquired facilities."
Over the past five years, more than $240 million has been invested in the plants' modern production and converting equipment. Orchids Paper's integrated plants have an estimated parent roll capacity of up to 114,000 tons and up to an estimated 114,500 tons of converting capacity. The acquisition provides access for up to an additional 20,000 tons of converted products for the Western U.S. market.
“MidAmerica is excited to welcome Cascades as a new tenant at the Park,” said MAIP Director of Workforce Development, Scott Fry. “Cascade is a strong company with a long history of success in the paper industry. We look forward to partnering with them in Oklahoma and the regional market they serve. Cascades mission and vision align well with our own and we are certain they will prove to be a valuable part of our community as they grow their business.”
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs 11,000 women and men across a network of over 90 facilities in North America and Europe. Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on while contributing to the well-being of people, communities and the entire planet.