Sofidel is to boost its presence across North America after signing a definitive agreement to acquire Clearwater Paper Corporation’s tissue business (CLW Tissue).
The transaction includes an annual production capacity of 340,000 metric tons distributed across four production sites in Shelby, North Carolina, Lewiston, Idaho, Las Vegas, Nevada, and Elwood, Illinois.
With sales of over $1.0bn, CLW Tissue is a premier player in the North American tissue market, providing high-quality tissue products to retailers operating across grocery and club channels, as well as mass merchants and discount stores.
Sofidel said the acquisition “marks a significant milestone” in its growth in North America, where the Italian-headquartered company has been present for over 10 years.
It added the move will strengthen its customer offering as well as expand its technology capabilities, including TAD.
Completion of the $1.06bn acquisition is expected within 2024 and is subject to regulatory approvals and satisfaction of other closing conditions.
Luigi Lazzareschi, Sofidel Chief Executive, said: “We are extremely proud of this transaction, which represents a crucial milestone in our history.
“Thanks to this transaction we are acquiring a strategic network of four manufacturing plants which will enlarge our products portfolio thanks to the TAD technology and create the conditions to significantly strengthen and sustain growth in North America.
“We welcome CLW Tissue’s employees to Sofidel and are excited to enhance together our value proposition for our customers.”
Arsen Kitch, President and Chief Executive, Clearwater Paper, said: “We are pleased to have reached this agreement with Sofidel, which we believe positions Clearwater Paper for its next chapter of growth and value creation.
“Clearwater Paper is transforming into a premier paper supplier in North America. Upon completion of this transaction, we intend to deleverage our balance sheet while scaling and diversifying our paperboard business to meet the needs of our customers.
“We look forward to delivering innovative and sustainable products to our converter customers while generating strong returns for our shareholders.
“Our tissue business has delivered excellent financial and operational performance, supported by outstanding service.
“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.”
