Sofidel America Acquires Clearwater Paper's Tissue Business
Sofidel America has acquired Clearwater Paper Corporation’s tissue business in a deal valued at more than $1 billion.
The deal is the next step in Sofidel’s efforts to meet the growing demand for its product in the United States, said Luigi Lazzareschi, CEO of Sofidel.
“We look forward to welcoming all the new employees into our family and integrating the tissue business into our network to strengthen our growth by achieving scale and expanding our ability to deliver sustainable, energy-efficient products to customers.”
RELATED: Sofidel America Expanding U.S. Manufacturing Operations
The $1.06 billion sale price represents a multiple of approximately six times the adjusted EBITDA of Clearwater Paper’s tissue segment during the 12 months ending March 31, 2024. The transaction is expected to close in the latter part of 2024.
“Our tissue business has delivered excellent financial and operational performance, supported by outstanding service,” said Arsen Kitch, president and CEO of Clearwater Paper. “We believe this business needs scale and investment to drive growth over the longer term, and we are excited to watch its continued progress as part of Sofidel.”
Sofidel’s acquisition of Clearwater’s tissue business is the latest move by the company as it expands its business in the U.S. Previously, Sofidel acquired ST Paper in Duluth, Minn., which was finalized at the end of January and allowed the company to expand its manufacturing base.
Additionally, the company is expanding its Circleville, Ohio, manufacturing facility with the addition of a third papermaking machine. The groundbreaking on this project began in March.
