Suzano SA is in discussions to acquire Clearwater Paper Corp., as it looks to expand its operations in the U.S. Clearwater, which is facing a decline in its stock value, specializes in pulp and paperboard products. Both companies have refrained from commenting on the negotiations.
Brazilian company Suzano SA is currently exploring the possibility of acquiring Clearwater Paper Corp., as reported by sources familiar with the matter. It has been indicated that Suzano is engaging the services of an advisor in hopes of negotiating a deal, although no agreement has yet been concluded, and there remains a potential that discussions will not lead to a finalized arrangement. Both companies have chosen not to comment on the ongoing discussions.
Clearwater Paper Corp., located in Spokane, Washington, specializes in producing pulp and paperboard products. As of the latest market information, Clearwater holds a market capitalization of $409 million, but its stock has decreased by 31.6% this year. Suzano stands as the largest supplier of hardwood market pulp in North America and has actively expanded its footprint in the United States, exemplified by its recent acquisition of two paperboard mills in Arkansas and North Carolina, a deal valued at $110 million.
Suzano SA, recognized for its leadership in the supply of hardwood market pulp, has been pursuing growth opportunities within the U.S. market. Clear Water Paper Corp., although facing a decline in its stock price, operates within a sector that continues to be vital due to ongoing demand for sustainable paper products. As the market for pulp and paperboard evolves, consolidation through acquisitions offers companies like Suzano a strategic avenue for enhancing their operational capabilities and market reach.
In summary, Suzano SA is negotiating a potential acquisition of Clearwater Paper Corp., with discussions still in preliminary stages and no agreement finalized. The acquisition could be strategic for Suzano as it continues to strengthen its position in the U.S. pulp and paper market. Clearwater Paper, while experiencing financial challenges, remains a key player in the industry.
Original Source: www.bnnbloomberg.ca
