Clearwater Paper Corp.’s Divestiture to Sofidel: Potential Risks and Challenges Ahead

Clearwater Paper Corp (CLW) has disclosed a new risk, in the Corporate Activity and Growth category.

The recent divestiture of Clearwater Paper Corp.’s consumer products division to Sofidel America Corp. introduces significant business risks that could impact its future operations and financial health. Potential challenges include unforeseen costs and legal disputes, as well as disruptions to customer, employee, and supplier relationships. The divestiture may also detract from the company’s ability to maintain day-to-day business functions and may not deliver the anticipated benefits, potentially affecting stockholder value. Additionally, Clearwater Paper Corp. may retain certain liabilities from the divested division, which could have a material adverse effect on its remaining business and financial condition.

The average CLW stock price target is $37.00, implying 32.05% upside potential.

To learn more about Clearwater Paper Corp’s risk factors, click here.