Clearwater Paper Announces the Closing of the Sale of its Tissue Business
Clearwater Paper (NYSE: CLW) has completed the sale of its tissue business to Sofidel America Corp. for $1.06 billion in cash, subject to customary price adjustments. The transaction marks a significant transformation for Clearwater into a premier independent supplier of paperboard packaging products to North American converters. The company plans to use the proceeds to reduce debt and strengthen its balance sheet, positioning itself to scale and diversify its paperboard business for long-term shareholder value. The company will release its third quarter 2024 results on November 4, 2024.
Clearwater Paper (NYSE: CLW) ha completato la vendita della sua attività di produzione di carta igienica a Sofidel America Corp. per 1,06 miliardi di dollari in contante, soggetta ad aggiustamenti di prezzo consueti. La transazione segna una significativa trasformazione per Clearwater in un fornitore indipendente di prodotti in cartone ondulato per i convertitori nordamericani. L'azienda prevede di utilizzare i proventi per ridurre il debito e rafforzare il proprio bilancio, posizionandosi per espandere e diversificare la propria attività di cartone per creare valore a lungo termine per gli azionisti. L'azienda pubblicherà i suoi risultati del terzo trimestre 2024 il 4 novembre 2024.
Clearwater Paper (NYSE: CLW) ha completado la venta de su negocio de papel tissue a Sofidel America Corp. por 1.06 mil millones de dólares en efectivo, sujeto a ajustes de precio habituales. La transacción marca una transformación significativa para Clearwater en un proveedor independiente de productos de cartón para los convertidores en Norteamérica. La compañía planea utilizar los ingresos para reducir la deuda y fortalecer su balance general, posicionándose para escalar y diversificar su negocio de cartón con el fin de crear valor a largo plazo para los accionistas. La empresa dará a conocer sus resultados del tercer trimestre de 2024 el 4 de noviembre de 2024.
클리어워터 페이퍼 (NYSE: CLW)는 소필델 아메리카 코퍼레이션에 자신의 티슈 사업을 10억 6천만 달러에 현금으로 판매하는 거래를 완료했습니다. 이 거래는 클리어워터가 북미 변환업체에 종이판 포장 제품을 공급하는 주요 독립 공급자로 변모하는 중요한 전환점을 나타냅니다. 회사는 수익금을 부채를 줄이고 재무 상태를 강화하는 데 사용하여 장기적인 주주 가치를 위해 종이판 사업을 확대하고 다양화할 계획입니다. 회사는 2024년 11월 4일에 2024 년 3분기 실적을 발표할 예정입니다.
Clearwater Paper (NYSE: CLW) a finalisé la vente de son activité de papier toilette à Sofidel America Corp. pour 1,06 milliard de dollars en espèces, sous réserve d'ajustements de prix habituels. Cette transaction marque une transformation significative pour Clearwater, qui devient un fournisseur indépendant de premier plan de produits d'emballage en carton pour les transformateurs nord-américains. La société prévoit d'utiliser les revenus pour réduire sa dette et renforcer son bilan, se positionnant ainsi pour développer et diversifier son activité de carton dans le but de créer de la valeur à long terme pour les actionnaires. La société publiera ses résultats du troisième trimestre 2024 le 4 novembre 2024.
Clearwater Paper (NYSE: CLW) hat den Verkauf seines Tissue-Geschäfts an Sofidel America Corp. für 1,06 Milliarden US-Dollar in bar abgeschlossen, vorbehaltlich üblicher Preisnachbesserungen. Die Transaktion stellt eine bedeutende Transformation für Clearwater dar, das sich zu einem führenden unabhängigen Anbieter von Wellpappenverpackungsprodukten für nordamerikanische Verarbeiter entwickelt. Das Unternehmen plant, die Erlöse zur Reduzierung seiner Schulden und zur Stärkung seiner Bilanz zu verwenden, um sich für eine Skalierung und Diversifizierung seines Wellpappen-Geschäfts für langfristigen Aktionärswert zu positionieren. Das Unternehmen wird seine Ergebnisse für das dritte Quartal 2024 am 4. November 2024 veröffentlichen.
- Sale of tissue business for $1.06 billion in cash
- Significant debt reduction expected from sale proceeds
- Strategic transformation into focused paperboard packaging supplier
- Balance sheet strengthening
- Loss of revenue stream from tissue business segment
- Reduction in business diversification
Insights
The
The strategic pivot to focus solely on paperboard packaging positions CLW as a specialized player in a growing market segment. Debt reduction from the sale proceeds will strengthen financial flexibility and potentially improve credit metrics. This transformation could lead to improved operational efficiency and potentially higher margins, as paperboard typically offers better profitability than tissue products.
The North American paperboard market presents strong growth opportunities, particularly in sustainable packaging solutions. This focused strategy could attract investors seeking pure-play exposure to the packaging sector, though it also increases market concentration risk.
This strategic exit from the tissue segment positions CLW advantageously in the paperboard packaging market, where demand is driven by e-commerce growth and sustainable packaging trends. The North American converter market offers stable growth prospects with barriers to entry, supporting potential pricing power.
The timing of the sale to Sofidel appears opportune, as the tissue market faces increasing competition and cost pressures. The transaction value suggests strong market conditions for tissue assets, allowing CLW to exit at an attractive multiple. The simplified business model should make CLW more attractive to investors seeking focused exposure to packaging trends, though it does reduce diversification benefits.
Completion of the Sale Accelerates Transformation into a Premier Independent Supplier of Paperboard to North American Converters and Significantly Reduces the Company’s Net Debt
“This is the next big step in transforming Clearwater into a premier independent paperboard packaging supplier in North America,” said Arsen Kitch, president and chief executive officer of Clearwater Paper. “While it’s the right business decision, it’s a bittersweet moment for our company. We are parting ways with valued colleagues, and that’s difficult. The Tissue team has built a fantastic business and delivered strong results. I am proud of their work and wish them well.”
“We’ll use the proceeds from the sale to pay down debt and strengthen our balance sheet. We will be well positioned to scale and diversify our paperboard business to create long-term value for our shareholders,” said Mr. Kitch.
Availability and Timing of Third Quarter 2024 Earnings Results
As previously announced, the Company will release its third quarter 2024 results on Monday, November 4, 2024. Mr. Kitch and Chief Financial Officer Sherri Baker will discuss the results during a conference call that day at 2 p.m. Pacific Time. Additional information on this event can be accessed at Clearwater Paper’s website: http://ir.clearwaterpaper.com.
About Clearwater Paper Corporation
Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters. Headquartered in
Forward-Looking Statements
This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding: the transaction between Clearwater Paper and Sofidel; expected use of proceeds; debt reduction; the company’s plans to scale and diversify its paperboard business; and shareholder value. All statements, other than historical facts, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,”, “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, unexpected costs, charges or expenses resulting from the transaction; potential risk of stockholder litigation in connection with the transaction or other settlements or investigations may result in significant costs of defense, indemnification and liability; potential purchase price adjustments; competitive responses to the transaction; achievement of anticipated financial results and other benefits of the transaction; potential risks associated with operating without the tissue business, including less diversification in products offered; changes in our capital structure; the company’s ability to service its debt obligations and restrictions on the company’s business from debt covenants and terms; and other risk factors as detailed from time to time in Clearwater Paper’s reports filed with the SEC, including its Annual Reports on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and Clearwater Paper does not undertake any obligation to update such statements, except as may be required by law.
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Investor Contact:
Sloan Bohlen
Solebury Strategic Communications
509.344.5906
investorinfo@clearwaterpaper.com
Media Contact:
Virginia Aulin
Clearwater Paper Corporation
509.344.5967
Virginia.Aulin@clearwaterpaper.com
Source: Clearwater Paper Corporation
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