Clearwater Paper Corporation has sold its Ladysmith, Wisconsin facility to Dunn Paper, Inc. for approximately $72 million. Clearwater Paper intends to use the net proceeds to help fund the expansion of its Shelby, North Carolina facility and opportunistically pay down debt, as the company says in the press release received by Lesprom Network.
"In our Consumer Products business, our strategy is focused on network optimization to match the growing demand for the ultra-quality segments of the tissue category. As a result, we elected to sell our Ladysmith facility, which manufactures recycled paper and does not align with that strategy,” said Linda K. Massman, president and CEO.
Effective today, Ladysmith employees are now employees of Dunn Paper.
B Riley FBRadvised Clearwater Paper on the sale of the Ladysmith facility. Pillsbury Winthrop Shaw Pittman LLP acted as legal advisor to Clearwater Paper.
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp.
Dunn Paper is a premier manufacturer of high-performance, advanced paper materials for lightweight technical food packaging and tissue products throughout North America.
