With this transaction worth $1.06 billion, Sofidel Group increases its production capacity by 25% (340,000 metric tons per year) and improves its geographic coverage in the United States, creating the conditions to meet additional demand and grow further.
Sofidel has finalized the acquisition of the tissue division of Clearwater Paper Corporation (“CLW Tissue”).
The agreement had been announced last July 22. All regulatory approvals have been obtained.
The transaction, the largest carried out in the Group’s history, represents a strategic step in Sofidel’s journey. Thanks to the acquisition of four production plants – Shelby (North Carolina), Lewiston (Idaho), Las Vegas (Nevada) and Elwood (Illinois) – and the integration of about 1,700 employees, Sofidel increases its production capacity by 25% (340,000 metric tons per year), expands its commercial offerings (two out of the six paper mill machines acquired are TAD – Through Air Drying machines, a technology widely used in the United States, particularly in the kitchen towel segment), and optimizes its geographic coverage.
“This transaction makes Sofidel the fourth largest tissue paper manufacturer in North America, and strengthens its leadership in the Private Label sector, a market that is growing further. A step that brings the goal of having equivalent revenues on both sides of the Atlantic Ocean much closer. A crucial acquisition for the future of Sofidel as a whole”, said Luigi Lazzareschi, Sofidel CEO.
“Today marks the completion of the largest acquisition in our Group’s history, a goal we have envisioned for years. We can proudly say that we were ready to seize the opportunity when it arose”, said Edilio Stefani, Sofidel Chairman.
Meanwhile, Sofidel is pursuing other consolidation and development plans in the North American market. It is doing so at the Circleville (Ohio) plant, where it is working on increasing paper mill capacity by 50%, and at the Duluth (Minnesota) plant, which will be equipped with converting lines and a new automated warehouse.
RELATED NEWS
