Clearwater Paper Corporation (NYSE: CLW) (“Clearwater Paper” or the “Company”), today announced the successful completion of the sale of its tissue business to Sofidel America Corp., a subsidiary of Sofidel S.p.A. (“Sofidel”), for $1.06 billion in cash, prior to customary purchase price adjustments. The transaction represents a significant step in the Company’s transformation into a premier independent supplier of paperboard packaging products to North American converters. Terms of the sale were first announced on July 22, 2024.
“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 Spokane, Wash., our team produces high-quality paperboard that provides sustainable packaging solutions for consumer goods and food service applications. For additional information, please visit our website at www.clearwaterpaper.com.
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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