SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE:CLW)(the "Company") today
announced the Company has sold its specialty products business and mills
to Dunn Paper, Inc. The Company intends to reinvest the net proceeds of
the sale into capital projects within its Consumer Products Division.
The transaction, which closed today, 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.
"The sale of the specialty products business sharpens our Consumer
Products Division's focus on the core retail business," said Linda
Massman, president and CEO. "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."
"On behalf of Clearwater Paper, we sincerely thank the specialty
products team for their hard work and commitment to providing our
customers with high-quality products and services," said Massman.
Effective today, 470 specialty products employees are now employees of
Dunn Paper.
"We are very pleased to welcome the exceptional people who lead and work
at these specialty mills to the Dunn Paper team," said Brent Earnshaw,
CEO of Dunn Paper. "Combining the unique assets, capabilities and
products of these mills with Dunn Paper's Port Huron mill will lead to a
specialty paper company with unmatched product offerings for our diverse
customer base."
FBR Capital Markets & Co., led by Matthew Spain, advised Clearwater
Paper on the sale of the specialty products business. Pillsbury Winthrop
Shaw Pittman LLP acted as legal advisor to Clearwater Paper.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, hard roll tissue, bleached paperboard and pulp at manufacturing
facilities across the nation. The Company is a premier supplier of
private label tissue to major retailers and wholesale distributors,
including grocery, drug, mass merchants and discount stores. In
addition, the Company produces bleached paperboard used by
quality-conscious printers and packaging converters. Clearwater Paper's
employees build shareholder value by developing strong customer
partnerships through quality and service.
ABOUT DUNN PAPER
Dunn Paper, Inc. is a leading specialty paper manufacturer with
customers worldwide. Dunn Paper produces a wide array of specialty
waxed, coated and uncoated machine-glazed papers used in various food
packaging and specialty label applications. Dunn Paper is located in
Port Huron, Mich., approximately 60 miles north of Detroit.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within
the meaning of the Private Litigation Reform Act of 1995 as amended,
including, but not limited to, statements regarding the Company's
reinvestment of proceeds, improved efficiencies, customer expectations,
Company financial goals and EBITDA margins. These forward-looking
statements are based on current expectations, estimates and assumptions
that are subject to change, and actual results may differ materially
from the forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to customer
acceptance and quantity and timing of purchases of the Company's new TAD
products; competitive pricing pressures for the Company's products,
including as a result of increased capacity as additional manufacturing
facilities are operated by the Company's competitors; difficulties with
the optimization and realization of the benefits expected from the
Company's TAD paper machine and converting lines in North Carolina; the
loss of or changes in prices in regards to a significant customer;
manufacturing or operating disruptions, including IT system failures,
equipment malfunction and damage to the Company's manufacturing
facilities; changes in the cost and availability of wood fiber and wood
pulp; changes in transportation costs and disruptions in transportation
services; labor disruptions; changes in costs for and availability of
packaging supplies, chemicals, energy, and maintenance and repairs;
changes in customer product preferences and competitors' product
offerings; changes in expenses and required contributions associated
with the Company's pension plans; environmental liabilities or
expenditures; changes in the U.S. and international economies and in
general economic conditions in the regions and industries in which the
Company operates; cyclical industry conditions; or inability to
successfully implement the Company's expansion strategies; and other
risks and uncertainties described from time to time in the Company's
public filings with the Securities and Exchange Commission. The
forward-looking statements are made as of the date of this press release
and the Company does not undertake to update any forward-looking
statements.
For additional information on Clearwater Paper, please visit our
website at www.clearwaterpaper.com.
News media
Clearwater Paper Corporation
Matt Van Vleet,
509-344-5912
Vice President, Public Affairs
Matt.VanVleet@clearwaterpaper.com
or
Investors
Clearwater
Paper Corporation
Robin Yim, 509-344-5906
Vice President,
Investor Relations
robin.yim@clearwaterpaper.com
Source: Clearwater Paper Corporation
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