Clearwater Paper Sells Consumer Products Business for $305M

Ticker: CLW · Form: 8-K · Filed: Mar 8, 2024 · CIK: 1441236

Sentiment: neutral

Topics: divestiture, acquisition, strategic-shift

Related Tickers: CLW

TL;DR

CLW selling Consumer Products to One Rock for $305M, closing Q2.

AI Summary

Clearwater Paper Corporation announced on March 7, 2024, that it has entered into a definitive agreement to sell its Consumer Products business to an affiliate of One Rock Capital Partners, LLC for $305 million. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions.

Why It Matters

This divestiture signals a strategic shift for Clearwater Paper, allowing it to focus on its core pulp and paper operations and potentially improve its financial flexibility.

Risk Assessment

Risk Level: medium — The sale is subject to customary closing conditions, and the integration of the divested business by the new owner could present unforeseen challenges.

Key Numbers

Key Players & Entities

FAQ

What is the primary reason for Clearwater Paper selling its Consumer Products business?

The filing indicates a strategic shift for Clearwater Paper, suggesting a focus on its core pulp and paper operations.

Who is the buyer of Clearwater Paper's Consumer Products business?

The buyer is an affiliate of One Rock Capital Partners, LLC.

When is the sale expected to be completed?

The transaction is expected to close in the second quarter of 2024.

What is the total value of the transaction?

The definitive agreement is for $305 million.

Are there any conditions to closing the sale?

Yes, the transaction is subject to customary closing conditions.

Filing Stats: 486 words · 2 min read · ~2 pages · Grade level 12.4 · Accepted 2024-03-07 19:02:07

Key Financial Figures

Filing Documents

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure Clearwater Paper Corporation is releasing an updated investor relations presentation, a copy of which is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Form 8-K and accompanying exhibit shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits (d) Exhibit Index Exhibit Description 99.1 Investor Presentation, March 2024

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date : March 6, 2024 CLEARWATER PAPER CORPORATION By: /s/ Rebecca A. Barckley Rebecca A. Barckley, Vice President, Corporate Controller (Principal Accounting Officer)

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