Clearwater Paper Announces the Closing of the Sale of its Tissue Business

Completion of the Sale Accelerates Transformation into a Premier Independent Supplier of Paperboard to North American Converters and Significantly Reduces the Company’s Net Debt

Clearwater Paper Corporation (“Clearwater Paper” or the “Company”), announced the successful completion of the sale of its tissue business to Sofidel America Corp., a subsidiary of Sofidel S.p.A. (“Sofidel”), for $1.06 billion in cash, prior to customary purchase price adjustments. The transaction represents a significant step in the Company’s transformation into a premier independent supplier of paperboard packaging products to North American converters. Terms of the sale were first announced on July 22, 2024.

“This is the next big step in transforming Clearwater into a premier independent paperboard packaging supplier in North America,” said Arsen Kitch, president and chief executive officer of Clearwater Paper. “While it’s the right business decision, it’s a bittersweet moment for our company. We are parting ways with valued colleagues, and that’s difficult. The Tissue team has built a fantastic business and delivered strong results. I am proud of their work and wish them well.”

“We’ll use the proceeds from the sale to pay down debt and strengthen our balance sheet. We will be well positioned to scale and diversify our paperboard business to create long-term value for our shareholders,” said Mr. Kitch.

About Clearwater Paper

Clearwater Paper is a premier supplier of private brand tissue to major retailers, including grocery, club, mass merchants, and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting, and cutting. Clearwater Paper’s employees build shareholder value by developing strong relationships through quality and service.

Contact:

Shannon Myers – Sr. Director, Corporate Communications – shannon.myers@clearwaterpaper.com – (509) 344-5967

Source: Clearwater Paper Corporation