Clearwater Paper to sell tissue business to Sofidel America for $1.06B

Clearwater Paper announced that it has entered into a definitive agreement to sell its tissue business to Sofidel America Corporation, a subsidiary of Sofidel S.p.A., a manufacturer of paper for hygienic and domestic use, for $1.06B, subject to adjustments for debt, cash, transaction expenses and net working capital. The transaction represents the next step in the company’s transformation to become a premier independent supplier of paperboard to North American converters and the conclusion of its previously announced review of strategic options for the tissue business. The $1.06B price represents a multiple of approximately six times the Adjusted EBITDA of Clearwater Paper’s tissue segment during the twelve months ending March 31, 2024. The Company expects net proceeds from the transaction of approximately $850M, which it intends to use to meaningfully delever its balance sheet and invest in growth initiatives for its continuing operations. The transaction is expected to close in the latter part of 2024, subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.