MONTREAL -- Cascades Inc. may want to buy the Manitoba division of Repap Enterprises Inc. if its
merger with Avenor Inc. goes through, says Bernard Lemaire, executive committee chairman.
Avenor said Monday that Repap Manitoba's kraft paper mill is among non-core assets valued at $850
million to be sold within 18 months of the $3.3-billion merger's completion. Analysts estimate Repap
Manitoba is worth about $100 million.
"We'd be interested at a price, and it would fit with some of our Quebec operations," Lemaire said
yesterday. He said Cascades expects to announce a fine paper acquisition soon.
Cascades, a Kingsey Falls, Que.-based packaging, tissue products and fine paper manufacturer, will
spend $120 million by 1999 to boost annual capacity at its 78%-owned Perkins tissue products unit by
30% to 53,000 tons in Canada and the U.S. It is also looking for a tissue acquisition.
Cascades yesterday posted net profit of $85.2 million ($1.37 a share) for the year ended Dec. 31,
including $13.2 million in special gains, against $113.4 million ($1.84) in 1995. Sales fell 8% to $2.1
billion from $2.3 billion.
Fourth-quarter profit was $12.6 million (19›), against $20.3 million (33›) a year earlier. Sales were $493
million, off 11% from $548 million. Shipments overall rose 16%. Paperboard and folding carton markets
are strong, but corrugated products remain weak.
"We expect 1997 will be a good year and most products will see price increases," Lemaire said.
Also yesterday, Montreal-based pulp and paper producer Stone-Consolidated Corp. posted 1996 net
profit of $164.3 million ($1.58) for the year ended Dec. 31, against $183.5 million ($2.59) in 1995. Sales
were $2.3 billion against $1.73 billion. Fourth-quarter net profit was $5.1 million (5›) against $60.5
million (70›) on sales of $551 million against $617 million.
The company said it continues to curtail production to balance out supply and demand, and noted that
newsprint inventories are now at the lowest levels since mid-1995. |
