Clearwater Paper has divested its Ladysmith facility in Wisconsin to Dunn Paper, for around $72m.
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The company intends to use the net proceeds to help fund the expansion of our Shelby, N.C. facility and opportunistically pay down debt.
Clearwater Paper president and CEO Linda Massman said: “In our Consumer Products business, our strategy is focused on network optimization to match the growing demand for the ultra-quality segments of the tissue category.
“As a result, we elected to sell our Ladysmith facility, which manufactures recycled paper and does not align with that strategy.
” On behalf of Clearwater Paper, we sincerely thank the Ladysmith team for their hard work and commitment to providing our customers with high-quality products and services.”
Effective today, Ladysmith employees are now employees of Dunn Paper.
Dunn Paper CEO Brent Earnshaw said: “Ladysmith is a critical piece of our strategic growth at Dunn.
“The additional capacity at Ladysmith will enable faster growth in the specialty tissue/absorbent market and their recycled fiber source is well suited for a variety of applications within the Dunn portfolio.”
B Riley FBR advised Clearwater Paper on the sale of the Ladysmith facility. Pillsbury Winthrop Shaw Pittman LLP acted as legal advisor to Clearwater Paper.
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores.
Dunn Paper is a premier manufacturer of high-performance, advanced paper materials for lightweight technical food packaging and tissue products throughout North America.
Dunn currently manufactures products at six locations across the Midwest, East Coast, and Ontario, Canada. Dunn Paper is a portfolio company of Arbor Investments, a Chicago-based private equity firm.
Source: Company Press Release