Cascades Inc. (TSX:CAS) won an auction to acquire Certain assets of Orchids Paper Products Company (OTCPK:TISU.Q) for approximately $210 million on June 27, 2019. Cascades Inc. (TSX:CAS) entered into definitive agreement to acquire Certain of the assets of Orchids Paper Products Company (OTCPK:TISU.Q) for approximately $220 million on July 1, 2019. Under the terms of agreement, consideration of $207 million was paid in cash, in addition to the assumption of debt of approximately $9 million.

The transaction will cover substantially all of Orchids' assets, including the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain equipment and various of Orchid's Paper commercial arrangements with Fabrica de Papel San Francisco, based in Mexicali, Mexico, and certain affiliates thereof. The transaction has been financed through Cascades credit facilities. Post completion of the acquisition, Orchids Paper Products will retain most of its operating employees to run all the assets.

The agreement is subject to approval by the Bankruptcy Court (subject to completion of definitive documentation), HSR Act and Mexican Anti trust approval and the satisfaction of customary closing conditions and is expected to close in August or September 2019. As of August 9, 2019, the transaction is expected to close in the third quarter of 2019. Donald E. Figliulo, Jerry L. Switzer, Christopher A. Ward and Shanti M. Katona of Polsinelli PC acted as the legal advisors to Orchids Paper Products Company.

CIBC Capital Markets is acting as exclusive financial advisor, and Sandy K. Feldman, Esq. of K&L Gates as legal counsel, to Cascades in the transaction.Cuatrecasas, Gonçalves Pereira, S.L.P. acted as legal advisor to Cascades Inc.