Cellu Tissue Ontario facility sold to Clearwater Paper
September 17, 2010 By Pulp & Paper Canada
Tissue and board maker Clearwater Paper Corporation will acquire Cellu Tissue Holdings, Inc., an Alpharetta, G…
Tissue and board maker Clearwater Paper Corporation will acquire Cellu Tissue Holdings, Inc., an Alpharetta, GA-based integrated manufacturer of tissue products for approximately US$502 million. Cellu Tissue has one Canadian manufacturing facility, in St. Catharines, Ont.
“Clearwater Paper already has a national sales footprint, and this acquisition gives us a rare opportunity to immediately have a national manufacturing presence to increase service to our existing private label grocery customers and expand into new private label channels,” said Gordon Jones, chairman, president and CEO.
The acquisition has been unanimously approved by both companies’ boards of directors and is expected to close in the fourth quarter of 2010, following Cellu Tissue stockholder approval, regulatory clearances, and other customary closing conditions.
Cellu Tissue’s well-developed private label and specialty tissue businesses, which include 10 sites, complement Clearwater Paper’s existing private label tissue and pulp and paperboard businesses. Located in Spokane, Wash., Clearwater Paper manufactures consumer tissue, bleached paperboard and wood products at six facilities across the country.
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