Cascades Inc. has finalized a $31 million agreement to sell its Flexible Packaging plant activities to Five Star Holding, based in Houston, TX. This transaction takes effect immediately, while Cascades retains ownership of the facility’s real estate.
Situated in Mississauga, ON, this flexible packaging facility is Cascades’ sole plant dedicated to manufacturing printed flexible plastic packaging and films. This divestiture aligns with the company’s strategy to evolve its operations, commercial approach, and business model, ensuring maximum value delivery for customers.
Cascades selected Five Star due to their expertise and extensive asset network, which positions them to unlock the plant’s growth potential within the flexible packaging market, particularly in the food and beverage packaging sector.
Employee Retention and Transition
The flexible packaging operations employ 45 individuals, all of whom will transition to Five Star upon closing. Cascades is committed to collaborating closely with Five Star to facilitate a seamless transition for employees, customers, and suppliers.
Additionally, the transaction includes a supply agreement to ensure ongoing production and provision of flexible films necessary for Cascades’ Tissue and Packaging sectors.
“Today’s decision will allow us to reduce our debt and support the optimization of our operational platform to grow our strategic sectors,” stated Hugues Simon, president and CEO of Cascades. “We are pleased to have found in Five Star a buyer committed to maintaining and developing the plant’s activities.”
Simon expressed his gratitude toward the facility’s workforce, stating, “We wish to thank our colleagues at Cascades Flexible Packaging for their contribution and look forward to continuing our collaboration with them as one of their customers.”
Five Star’s North American Expansion
Alex Huis in ‘T Veld, CEO of Five Star, emphasized the cultural synergy between the two organizations. “We look forward to welcoming the team at Cascades Flexible Packaging to the Five Star family,” he remarked. “There was an immediate connection between our teams around manufacturing culture and shared focus on quality and safety.”
This acquisition accelerates Five Star’s growth in sustainability-focused packaging solutions for the consumer, food, and beverage markets across Canada and North America.
Founded in 1964, Cascades delivers sustainable, innovative, and value-added packaging, hygiene, and recovery solutions. The company employs approximately 9,500 individuals across a network of 65 operational facilities in North America.
