Cascades Inc. is selling its Dopaco business unit for $400 million (U.S.) cash to a global packaging company based in New Zealand.
Dopaco makes paper cups and folding cartons for fast-food restaurants and the food industry.
It has six plants - two in Ontario and four in the United States.
Cascades didn't disclose how the new owner plans to integrate the Dopaco business into its operations.
The buyer is Reynolds Group Holdings Ltd., a global supplier of consumer food and beverage packaging headquartered in Auckland, N.Z.
Cascades of Kingsey Falls, Que., says it will use proceeds from the sale of Dopaco to pay down debt.
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