Pillsbury Backs Clearwater In $502M Cellu Purchase

Law360, New York (September 16, 2010, 12:27 PM EDT) -- Paperboard and label manufacturer Clearwater Paper Corp. is set to expand into the consumer products sector by acquiring Cellu Tissue Holdings Inc. in a deal valued at $502 million.

Clearwater announced Thursday it has agreed to purchase Cellu, after securing $350 million in debt financing from Bank of America Merrill Lynch for the transaction, which entails the acquisition of $247 million in equity at $12 per share and $255 million of Cellu debt.

The expansion positions Clearwater as a leading papermaker and converter of tissue products,...
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