Clearwater Paper Corporation has sold its specialty products business and mills to Dunn Paper and said it will reinvest the net proceeds of the sale within its consumer products division.
The transaction includes the sale of five Clearwater Paper subsidiaries with facilities located at East Hartford, Conn., Menominee, Mich., Gouverneur (Natural Dam), N.Y., St. Catharines, Ontario, and Wiggins, Miss.
Linda Massman, president and chief executive, said: “The sale of the specialty products business sharpens our consumer products division’s focus on the core retail business.
“It’s about improving our approach and efficiencies in all parts of our business while meeting or surpassing our customers’ expectations, and our company financial goals.
“We believe that the capital projects in which we will invest the proceeds of this sale can yield a 300 to 400 basis point improvement in the consumer product division’s EBITDA margins over the next three years.”
Some 470 specialty products employees are now employees of Dunn Paper.
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard roll tissue, bleached paperboard and pulp at manufacturing facilities.
The company supplies private label tissue to retailers and wholesale distributors.
Dunn Paper is a leading specialty paper manufacturer and produces a range of specialty waxed, coated and uncoated machine-glazed papers used in various food packaging and specialty label applications.