Aug 02, 2007. /Lesprom Network/. Cascades Inc. announces that it has entered into an agreement with Honeycomb Products of Michigan (HPM) to acquire the assets of HPM's honeycomb board mill located in Grand Rapids, Michigan. The transaction is not material and its terms were not disclosed. The acquisition of HPM enables Cascades Speciality Products Group to solidify its position as the second largest manufacturer of honeycomb board in the market and to increase its "green" industrial packaging product line entirely made from recycled paper. It is also a great opportunity for Cascades to further increase its vertical integration. Commenting on the transaction, Mario Plourde, president and chief operating officer of Cascades Speciality Products Group stated: "This transaction fits perfectly well with our strategic plan. Through its enviable geographical positioning, the acquisition of the HPM plant will facilitate our efforts to penetrate the US market. Furthermore, the quality of HPM's products, its strong management team and its continuously improving performance offer strong support for improving and sustainable profitability". End-markets for honeycomb products include the packaging of furniture, household-appliance and transportation industries. Founded in 1964, Cascades produces, transforms and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs close to 14 000 employees who work in more than 100 modern and flexible production units located in North - America and Europe. Cascades' management philosophy, its more than 40 years of experience in recycling, its continued efforts in research and development are strengths which enable the company to create new products for its customers. The Cascades shares trade on the Toronto stock exchange.