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Clearwater Paper acquisition of Cellu Tissue includes St. Catharines tissue plant

Clearwater Paper Corporation has completed its acquisition of Cellu Tissue Holdings, Inc., a Georgia-based manufacturer of tissue products. The acquisition includes a tissue plant in St. Catharines, Ont. Clearwater Paper, headquartered in…

Clearwater Paper Corporation has completed its acquisition of Cellu Tissue Holdings, Inc., a Georgia-based manufacturer of tissue products. The acquisition includes a tissue plant in St. Catharines, Ont. Clearwater Paper, headquartered in Spokane, Wash., now has 14 manufacturing locations in the U.S. and Canada, with a fifteenth under construction at Shelby, N.C.

“The acquisition significantly expands our tissue business to serve a broad customer base through a truly national network of sales and management professionals, talented manufacturing employees and strategically located production facilities,” said Gordon Jones, chairman, president and CEO. “The acquisition supports our strategy to grow our private label tissue business while providing the opportunity to diversify into new channels.”

Clearwater Paper paid US$12 per share in cash for Cellu Tissue’s outstanding common stock and funded the acquisition using a combination of existing cash on hand and US$375 million of debt financing. The purchase price was approximately US$530 million.

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard, pulp and wood products. The company is a premier supplier of private label tissue to major retailers and wholesale distributors.