Clearwater Paper Completed Sale of Tissue Business to Sofidel
Scrap Metal News | 2024-11-05 14:29:21
The deal speeds up Clearwater's development into a leading independent provider of paperboard to converters in North America.
By Paul Ploumis
SEATTLE (Scrap Monster): Clearwater Paper Corporation announced that it has successfully completed the sale of its tissue business to Sofidel America Corporation for $1.06 billion in cash, prior to customary purchase price adjustments. The deal’s terms were first made public in July of this year.
The deal speeds up Clearwater's development into a leading independent provider of paperboard to converters in North America. Additionally, it will lead to a notable decrease in its net debt.
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"This is a bittersweet moment for the company," said Arsen Kitch, president and CEO of Clearwater Paper. He congratulated the Tissue team for creating a great company and producing excellent outcomes. Its debt will be paid off and its balance sheet will be strengthened with the sales profits. In order to generate long-term value for its shareholders, the company plans to expand and diversify its paperboard business, Kitch continued.
The business reported $644 million in net sales and $6 million in net income from total operations, or $0.35 per diluted share during Q3 this year. A new authorization to buy back $100 million worth of shares was authorized by the company's board of directors.
