Clearwater Paper Sells Specialty Mills To Dunn Paper

(RTTNews) - Clearwater Paper Corp (CLW) on Tuesday said it sold its specialty products business and mills to Dunn Paper Inc. The company plans to reinvest the net proceeds of the sale into capital projects within its Consumer Products Division.

The deal includes the sale of five Clearwater Paper subsidiaries with facilities located at East Hartford, Conn., Menominee, Mich., Gouverneur (Natural Dam), N.Y., St. Catharines, Ontario, and Wiggins, Miss.

"The sale of the specialty products business sharpens our Consumer Products Division's focus on the core retail business," said Linda Massman, president and CEO of Clearwater. "It's about improving our approach and efficiencies in all parts of our business while meeting or surpassing our customers' expectations, and our company financial goals. We believe that the capital projects in which we will invest the proceeds of this sale can yield a 300 to 400 basis point improvement in the Consumer Product Division's EBITDA margins over the next three years."

Effective today, 470 specialty products employees are now employees of Dunn Paper, Clearwater said.