Clearwater Paper, a supplier of quality consumer tissue and bleached paperboard based in Spokane, announced Monday its agreement to sell its tissue business to Sofidel America for $1.06 billion.
Sofidel America, based in Pennsylvania, is a subsidiary of Sofidel S.p.A., a major provider of tissue for European markets. Sofidel first entered the U.S. market in 2015 and now produces tissues in eight different states (including a major plant in Oklahoma) for the private label sector. Sofidel S.p.A., based in Italy, is privately held and owned by the Stefani and Lazzareschi families.
Goldman Sachs was financial advisor to Clearwater, with Pillsbury Winthrop Shaw Pittman serving as outside counsel.
The Pillsbury team was led by partners Justin Hovey in San Francisco and Veronica Nunn in Austin with senior associate Larissa Roche (San Francisco) and included partner Mario Dottori (Washington, D.C.), special counsel Sarvesh Mahajan (New York) and associates Gabby Torres (Austin) and Samuel Markel (Washington, D.C.).
The team also included: finance partner Philip Tendler (San Francisco) with senior associate Olivia Lugar (San Francisco) and associate Terrel Ferguson (San Francisco); bank partner Joseph Fastiggi (New York); real estate partner Noa Clark (San Francisco), senior associate Samantha Sharma (New York) and associates Allan Van Vliet (San Francisco) and Cara MacDonald San Francisco); antitrust partner Michael Sibarium (Washington, D.C.) and attorney Evan Storm (Washington, D.C.); compensation partners Christine Richardson (San Francisco) and Peter Hunt (New York) and associate Jennifer Wong (Los Angeles); IP partner Ed Cavazos (Austin) and counsel Sandro Serra (Austin).
The Pillsbury team was supported by tax partner Julie Divola (San Francisco); trade partner Matthew Rabinowitz (Washington, D.C.) and associate Ata Akiner (Washinton, D.C.); litigation partner Alex Lathrop (Washinton, D.C.); insurance attorney Bryan Coffey (Washinton, D.C.); government partner Aimee Ghosh (Washinton, D.C.); regulatory associate Arielle Heffez; (Washinton, D.C.); and corporate counsel Brandon Eckford (Miami) and associates Valerie Medina (Austin), Sheetal Misra (San Francisco), Kendy Chan (San Francisco), Isabella Borges (San Francisco) and Carissa Lee (San Francisco).
“The acquisition of Clearwater Paper’s tissue business is another important milestone on our path to meet the growing demand for our products in the United States,” said Luigi Lazzareschi, CEO of Sofidel.
The $1.06 billion price tag for the transaction represents a multiple of approximately six times the Adjusted EBITDA of Clearwater Paper’s tissue segment during the twelve months ending March 31, 2024, according to the company. Clearwater expects net proceeds of approximately $850 million, which it intends to use to reduce debt and invest in growth initiatives for its continuing operations, particularly its paperboard business.
Said Arsen Kitch, president and CEO: “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.”
The transaction is expected to close in the latter part of 2024, subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.