Clearwater Paper Announces Sale of Ladysmith, Wisconsin Facility to Dunn Paper, Inc.
23 August 2018
Clearwater Paper Corporation today announced the Company has sold its Ladysmith, Wis. facility to Dunn Paper, Inc.for approximately $72 million. The Company intends to use the net proceeds to help fund the expansion of our Shelby, N.C. facility and opportunistically pay down debt.
"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 chief executive officer.
“On behalf of Clearwater Paper, we sincerely thank the Ladysmith team for their hard work and commitment to providing our customers with high-quality products and services,” said Massman.
Effective today, Ladysmith employees are now employees of Dunn Paper.
"Ladysmith is a critical piece of our strategic growth at Dunn,” said Brent Earnshaw, chief executive officer of Dunn Paper. “The additional capacity at Ladysmith will enable faster growth in the specialty tissue/absorbent market and their recycled fiber source is well suited for a variety of applications within the Dunn portfolio.”
B Riley FBRadvised Clearwater Paper on the sale of the Ladysmith facility. Pillsbury Winthrop Shaw Pittman LLP acted as legal advisor to Clearwater Paper.