Clearwater Paper Announced Sale of Tissue Business to Sofidel

SEATTLE (Scrap Monster): Clearwater Paper Corporation announced that it has entered into a definitive agreement to sell its tissue business to Sofidel America Corporation for $1.06 billion, subject to adjustments for debt, cash, transaction expenses and net working capital.

The transaction represents the next step in the company’s transformation aimed at becoming a premier independent supplier of paperboard to North American converters. Earlier, the company had announced strategic review of its tissue business. The transaction is expecte d to close later in 2024, subject to customary closing conditions.

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Arsen Kitch, President and Chief Executive Officer, Clearwater noted that the company is pleased to have reached an agreement with Sofidel, which it believes will position the company for its next chapter of growth and value creation. The transaction will help it to deleverage its balance sheet, while diversifying its paperboard business, he added. Furthermore, he appreciated the dedication of its team members, who have been instrumental in the successful execution of its strategy.

The financial advisor to Clearwater for the transaction is Goldman Sachs & Co. LLC, while the legal advisory services are being provided by Pillsbury Winthrop Shaw Pittman LLP, said the company press release.