Clearwater Paper completes US$1.06 billion sale of tissue business to Sofidel
The sale advanced the company’s transition to a primary supplier of paperboard packaging in North America, with proceeds set to strengthen the company’s financial foundation
Clearwater Paper Corporation announced today that it has finalized the sale of its tissue business to Sofidel America Corp., a subsidiary of Sofidel S.p.A., for US$1.06 billion in cash, subject to customary purchase price adjustments. The transaction marks a key milestone in Clearwater’s strategic shift towards becoming a leading independent supplier of paperboard packaging solutions for North American converters. Initial details of the sale were disclosed on July 22, 2024.
“This is the next big step in transforming Clearwater into a premier independent paperboard packaging supplier in North America”, said Arsen Kitch, president and CEO of Clearwater Paper. “While it’s the right business decision, it’s a bittersweet moment for our company. We are parting ways with valued colleagues, and that’s difficult. The Tissue team has built a fantastic business and delivered strong results. I am proud of their work and wish them well”.
Mr. Kitch also noted that the proceeds from the sale will be directed toward reducing company debt and strengthening the balance sheet: “We’ll use the proceeds from the sale to pay down debt and strengthen our balance sheet. We will be well positioned to scale and diversify our paperboard business to create long-term value for our shareholders”, he added.
