Clearwater will use the net proceeds to help fund the expansion of its Shelby, North Carolina facility and opportunistically pay down debt.
August 21, 2018
Clearwater Paper yesterday announced that it has sold its Ladysmith, Wisconsin facility to Dunn Paper for approximately USD 72 million. Clearwater said that it intends to use the net proceeds to help fund the expansion of its Shelby, North Carolina 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.
As of Aug. 21, Ladysmith employees are employees of Dunn Paper.
“Ladysmith is a critical piece of our strategic growth at Dunn,” said Brent Earnshaw, CEO 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.”
Dunn Paper is a manufacturer of high-performance, advanced paper materials for lightweight technical food packaging and tissue products throughout North America. Dunn currently manufactures products at six locations across the Midwest, East Coast, and Ontario, Canada. Dunn Paper is a portfolio company of Arbor Investments, a Chicago-based private equity firm.