Clearwater Paper has officially completed the sale of its tissue business to Sofidel America Corp., a subsidiary of the Italy-based Sofidel S.p.A., in a cash transaction valued at $1.06 billion.
The sale, first announced on July 22, 2024, marks a decisive step for Clearwater Paper as it shifts its focus toward becoming a leading independent supplier of paperboard packaging products to North American converters.
The transition aligns with Clearwater Paper’s broader strategy to hone its business model and reduce net debt. In a statement, CEO Arsen Kitch acknowledged the emotional weight of the sale, which involved saying farewell to valued team members in the tissue division. “While it’s the right business decision, it’s a bittersweet moment for our company. The Tissue team has built a fantastic business and delivered strong results. I am proud of their work and wish them well,” he remarked.
Beyond sentiment, the sale underscores Clearwater Paper’s dedication to optimizing its financial position. Kitch confirmed that the proceeds from the transaction will primarily be allocated to debt reduction, enhancing the company's capacity to invest in and expand its core paperboard segment. The company sees this shift as an opportunity to deepen relationships with North American converters, providing sustainable paperboard solutions for packaging needs across consumer goods and food services.
This announcement comes ahead of Clearwater Paper’s anticipated third-quarter earnings report, scheduled for release on November 4, 2024. Both Kitch and CFO Sherri Baker are expected to discuss the results and the company’s strategic outlook during a conference call later that day, highlighting how the sale supports Clearwater’s goals and growth plans.
Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters. Headquartered in Spokane, Wash., their team produces high-quality paperboard that provides sustainable packaging solutions for consumer goods and food service applications.
