Suzano SA is considering an acquisition of Clearwater Paper Corp., currently negotiating terms with advisors. Clearwater, facing a drop in stock value, has a market cap of $409 million. The deal remains unconfirmed, with representatives opting not to comment. Suzano has previously acquired paperboard mills in the U.S. as part of its growth strategy.
Suzano SA of Brazil is currently assessing a potential acquisition of Clearwater Paper Corp., as reported by insiders familiar with the discussions. The Brazilian company is collaborating with an advisory team to facilitate an agreement; however, no firm deal has materialized yet, and it remains uncertain whether an agreement will ultimately be finalized. Representatives from both companies have opted not to provide any comments regarding the situation.
Clearwater Paper, situated in Spokane, Washington, specializes in manufacturing pulp and paperboard products, with a current market capitalization of $409 million as of Thursday’s market close. The company’s stock has experienced a significant decline of 31.6% this year. Meanwhile, Suzano, recognized as the largest supplier of hardwood market pulp in North America, has been actively expanding its presence in the United States, having recently acquired two paperboard mills in Arkansas and North Carolina in a transaction valued at $110 million.
This potential merger represents a strategic move within the paper and pulp industry, emphasizing the ongoing consolidation trends as companies seek to enhance operational efficiencies and market reach. Suzano’s expansion efforts in the U.S. market reflect its commitment to growth and its desire to leverage the existing infrastructure and market opportunities presented by companies like Clearwater Paper, especially given the latter’s recent financial struggles. Clearwater’s declining stock prices may make it a more attractive target for acquisition as larger firms pursue growth.
In summary, Brazil’s Suzano SA is exploring an acquisition of Clearwater Paper Corp. as part of its strategic expansion into the North American market. While discussions are ongoing and facilitated by an advisory team, no agreement has yet been established, and Clearwater’s recent decline in market performance presents both challenges and opportunities in this potential transaction. The situation continues to evolve, with significant implications for the industry.
Original Source: www.bnnbloomberg.ca
