Cascades Buys Remaining 50-Percent Interest in Dopaco

Published: August 27, 2004, By pffc-online.com

PRESS RELEASE

KINGSEY FALLS, QC, CANADA—Cascades Inc. reports it has acquired the remaining 50% interest in Exton, PA, USA-based Dopaco Inc. With the completion of the buy, the converter of packaging for the quick-service restaurant industry (QSR) will be a wholly owned subsidiary of the Canadian-based Cascades.

According to Cascades, the total purchase price (based on a financial formula) is expected to be in the range of US$90 million to US$100 million and is payable in two installments. The initial payment, in the amount of US$63 million, is payable at closing and the second installment is due in May of 2005.

Dopaco founder Edward Fitts will remain as CEO until the end of 2005. Cascades says it intends on managing Dopaco as a separate profit center while maximizing synergies with its existing production facilities and its sales and marketing resources.

Says Fitts, “This is an exceptional opportunity for Dopaco’s employees, customers, and suppliers. Cascades is a world-class company with an outstanding record of growth and development, particularly in the fields of packaging and tissue.”

With annual sales in excess of US$300 million, Dopaco operates seven plants in North America and also has joint venture interests in the United States, Australia, Indonesia, and China. Dopaco currently employs approximately 1,400 people in North America.

For additional PFFC coverage of Dopaco, check out November 2003's Dopaco cover story, Livin' “Lean” with CTP (pffc-online.com/mag/paper_livin_lean_ctp). Visit Dopaco at dopaco.com. Learn more about Cascades at cascades.com.