Italy’s Sofidel Group has finalised the $1.06bn acquisition of Clearwater Paper Corporation’s tissue division (CLW Tissue), a move it said makes it the fourth largest tissue manufacturer in North America.
The transaction is the largest carried out in the group’s history and means Sofidel has increased its production capacity by 25% (340,000tpy), as well as improving its geographic coverage in North America.
The acquisition includes the purchase of four production plants – Shelby (North Carolina), Lewiston (Idaho), Las Vegas (Nevada) and Elwood (Illinois) – and the integration of 1,700 employees.
It has also expanded its commercial offerings: two out of the six paper machines acquired are TAD.
Luigi Lazzareschi, Sofidel Chief Executive, said: “This transaction makes Sofidel the fourth largest tissue paper manufacturer in North America, and strengthens its leadership in the private label sector, a market that is growing further.
“A step that brings the goal of having equivalent revenues on both sides of the Atlantic Ocean much closer. A crucial acquisition for the future of Sofidel as a whole.”
Terms of the sale were first announced on 22 July 2024.
Sofidel said it is also pursuing “other consolidation and development plans in the North American market.”
This includes looking at the Circleville, Ohio, plant, where it is working on increasing paper mill capacity by 50%, and at the Duluth plant in Minnesota, which it said will be equipped with converting lines and a new automated warehouse.
Clearwater Paper Corporation said the move represents “a significant step in the company’s transformation” into an independent supplier of paperboard packaging products to North American converters.
“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 of Clearwater Paper, said: “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.”
