KINGSEY FALLS, Que. - Packaging company Cascades (TSX:CAS) has sold its fine papers division to Rolland Enterprises Inc., a subsidiary of H.I.G. Capital, for $39.5 million.
Cascades said the sale includes its fine papers and security papers plant and its CTC Converting Centre, a fine papers processing and distribution plant, in Saint-Jerome, Que.
The agreement also includes the Fibres Breakey pulp mill in Sainte-Helene-de-Breakeyville, Que.
The three plants employ 425 workers.
Cascades said the decision to sell the plants will help the company reduce its debt.
"Despite the positive contribution of these units to Cascades' results, we have adopted a strategic orientation emphasizing growth in the packaging, tissue papers and recovery sectors," said Cascades president and CEO Mario Plourde in a statement Tuesday.