OpenGate Capital on Monday is buying two U.S. subsidiaries of Canada’s Cascades Inc. that make recycled boxboard used to make containers for cereal, frozen food and other consumer products.
Cascades Boxboard Group-Connecticut LLC is a paper mill facility in Versailles, Conn., and Cascades Boxboard US Inc. is a converting facility in Hebron, Ky. They had combined revenues of more than $100 million last year.
OpenGate, a Los Angeles private equity firm said the deal with Montreal-based Cascade, terms of which were not disclosed, augments its recent acquisition of two wood and paper industry companies in Europe. It also is in line with the firm’s philosophy of investing in eco-friendly sectors.
“These are classic, well-run manufacturing subsidiaries that have the untapped potential to be even better,” Andrew Nikou, OpenGate managing partner, said in a statement.
The deal is expected to close on June 23.