UPDATE 1-Cascades to buy Atlantic Packaging's tissue business
* Deal valued at about C$60 mln
* Says deal to increase annual production of recycled tissue
* Assets located in or close to Toronto
June 12 (Reuters) - Packaging and paper-products company Cascades Inc (CAS.TO) agreed to buy Atlantic Packaging Products Ltd's tissue business for about C$60 million ($54.10 million) to increase its annual capacity of recycled tissue.
The deal would enable Cascades to increase its annual capacity of recycled tissue by 55,000 tonnes and raise its converting capacity by close to 70,000 tonnes, the company said.
The assets, which are located in or close to Toronto, would increase the number of Cascades employees in Ontario by 175, totaling 2,175 employees for the company in that province.
Shares of the Kingsey Falls, Quebec-based company closed at C$4.37 Thursday on the Toronto Stock Exchange. ($1=1.109 Canadian Dollar) (Reporting by Koustav Samanta in Bangalore; Editing by Ratul Ray Chaudhuri)
