Clearwater Paper Focuses on Paperboard: Sells Tissue Business for $1.06B
Portfolio Pulse from Lekha Gupta
Clearwater Paper Corporation (NYSE:CLW) has agreed to sell its tissue business to Sofidel America Corporation for $1.06 billion. The transaction is expected to close in late 2024, with net proceeds of around $850 million to be used for debt reduction and growth initiatives. CLW shares rose 9.66% following the announcement. Investors can also gain exposure through Invesco S&P Smallcap 600 Pure Value ETF (NYSE:RZV) and First Trust DJ Select MicroCap ETF (NYSE:FDM).
July 22, 2024 | 3:21 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Clearwater Paper Corporation (NYSE:CLW) has sold its tissue business for $1.06 billion, aiming to focus on its paperboard segment. The deal is expected to close in late 2024, with net proceeds of around $850 million to be used for debt reduction and growth initiatives. CLW shares rose 9.66% following the announcement.
The sale of the tissue business allows Clearwater Paper to focus on its core paperboard operations, which is likely to be viewed positively by investors. The significant rise in share price indicates strong market approval.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
First Trust DJ Select MicroCap ETF (NYSE:FDM) includes Clearwater Paper Corporation (CLW) in its portfolio. The sale of CLW's tissue business and the subsequent rise in its share price could positively impact FDM's performance.
FDM holds CLW in its portfolio, and the positive news regarding CLW's business transformation and share price increase is likely to benefit FDM.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Invesco S&P Smallcap 600 Pure Value ETF (NYSE:RZV) includes Clearwater Paper Corporation (CLW) in its portfolio. The sale of CLW's tissue business and the subsequent rise in its share price could positively impact RZV's performance.
RZV holds CLW in its portfolio, and the positive news regarding CLW's business transformation and share price increase is likely to benefit RZV.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50