More newsCourt Approves Cascades' Acquisition of American Tissue Assets
10:26 EDT Friday, June 07, 2002
KINGSEY FALLS, Quebec, June 7 /CNW/ - Cascades (CAS-TSX) announced that the American Bankruptcy Court approved yesterday the previously announced purchase of a tissue paper mill, two conversion sites and a paper machine. These assets were previously owned by American Tissue Inc., a tissue and fine paper manufacturer presently reorganizing under the U.S. Bankruptcy Code.
With a total combined annual production capacity of 110,000 short tons, the tissue paper manufacturing units are located in Mechanicville, New York, and in St-Helens, Oregon. This transaction valued at $33 million US, and is in addition to the acquisition of 33 converting lines for approximately $20 million US, announced last April.
According to Suzanne Blanchet, President and Chief Executive Officer of the Cascades Tissue Group, "these are strategic acquisitions for our commercial and industrial sector that offers a diversified range of papers in the form of bathroom tissue, paper towels, napkins and facial tissue. Furthermore, this transaction will push Cascades from the 5th to the 4th position among North American tissue paper manufacturers."
The transaction is scheduled to close in mid-June, at which time Cascades will hold a conference call for the press and analysts.
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