SGF invests in Cascades Inc. by parcticipating in the financing of the Norampac acquistion
Montréal, December 29, 2006 — Société générale de financement du Québec (SGF) announces that it is acquiring capital stock of Cascades inc. (TSX: CAS), for $100 million in cash, in connection with Cascades' most recent public offering.
With this subscription, SGF is contributing to the acquisition by Cascades, based in Kingsey Falls, Québec, of the 50% interest held by Domtar in Norampac Inc. This transaction falls in line with the company’s strategic objective to become one of North America's most important producers of containerboard packaging.
Norampac, founded in 1997, is the leading manufacturer of containerboard in Canada and is among the top ten manufacturers in North America. The company currently operates 34 facilities in Canada, the U.S. and France, including seven linerboard and corrugating-medium mills, 26 box plants and a research centre. This strategically located network of plants enables Norampac to serve a vast market encompassing the paper, food, wine and spirits industries as well as several other consumer products segments.
“We salute Cascades’ strategic decision to concentrate operations in two key paper industry sectors: packaging – with Norampac – and tissue,” said SGF President Pierre Shedleur. “This equity financing dovetails with our investment orientations in the forest products sector, whereby we are seeking to gain favourable positioning for top-performing companies in promising niche markets.”
SGF also congratulates the members of Cascades’ senior management on a job well done, and its President and CEO for his vision. “At every stage in its development, Cascades has demonstrated innovation and boldness,” Mr. Shedleur added. “From humble beginnings as a family-owned recycling business, Alain, Bernard and Laurent Lemaire have grown their company over the years into a North American leader in the packaging and tissue industries. The Lemaires have also demonstrated vision, by assembling a first-rate management team. This is why SGF has also chosen to invest in this human capital, in this team of builders.”
This participation in Cascades’ acquisition of Norampac is in keeping with SGF’s mission of contributing to sustainable development for Québec through profitable, structure-enhancing investments in promising sectors. Via the Forest Products investment group, led by Georges Kobrysnky, SGF supports growth and consolidation of companies with the capacity to capitalize on the business opportunities available in markets with strong growth.
Société générale de financement du Québec (SGF), an industrial and financial holding company of the Quebec government, has the mission of carrying out, in cooperation with partners and in accordance with accepted requirements of profitability, economic development projects, in particular in the industrial sector, in conformity with the economic development policy of the Quebec government . (sgfqc.com)
Société générale de financement du Québec
Vice-President, Communications and Marketing