Clearwater Paper Sells Ladysmith, WI, Tissue Facility to Dunn Paper

Clearwater Paper Corporation has announced the it has sold its Ladysmith, WI, facility to Dunn Paper, Inc. for approximately $72 million. The company intends to use the net proceeds to help fund the expansion of our Shelby, NC, facility and opportunistically pay down debt.

"In our Consumer Products business, our strategy is focused on network optimization to match the growing demand for the ultra-quality segments of the tissue category. As a result, we elected to sell our Ladysmith facility, which manufactures recycled paper and does not align with that strategy," said Linda K. Massman, president and CEO.

"On behalf of Clearwater Paper, we sincerely thank the Ladysmith team for their hard work and commitment to providing our customers with high-quality products and services," said Massman.

"Ladysmith is a critical piece of our strategic growth at Dunn," said Brent Earnshaw, CEO of Dunn Paper. "The additional capacity at Ladysmith will enable faster growth in the specialty tissue/absorbent market and their recycled fiber source is well suited for a variety of applications within the Dunn portfolio."

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent 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, and offers services that include custom sheeting, slitting and cutting. Clearwater Paper's employees build shareholder value by developing strong customer partnerships through quality and service.

Dunn Paper is a premier manufacturer of high-performance, advanced paper materials for lightweight technical food packaging and tissue products throughout North America. Dunn currently manufactures products at six locations across the Midwest, East Coast, and Ontario, Canada. Dunn Paper is a portfolio company of Arbor Investments, a Chicago-based private equity firm.