Clearwater Paper/Cellu Tissue Holdings
On September 16, 2010, Clearwater Paper Corporation (NYSE: CLW) announced that they have agreed to acquire Cellu Tissue Holdings, Inc. (NYSE: CLU) for a total consideration of $502 million.
Clearwater will pay $12 per outstanding Cellu share, and $350 million in debt financing.
Clearwater Paper believes the acquisition will be immediately accretive to earnings per share before taking into account an estimated $15-$20 million in net annual cost synergies expected by the end of 2012.
In connection with the acquisition of Cellu Tissue, Clearwater Paper intends to tender for or defease Cellu Tissue’s outstanding 11.50% senior secured notes due 2014.
Clearwater used BofA/Merrill Lynch as their financial advisor and Pillsbury Winthrop Shaw Pittman LLP as their legal advisor.
Cellu hired Goldman, Sachs & Co. as their financial advisor and King & Spalding as their legal advisor.
The deal is expected to close in the fourth quarter of 2010.
Clearwater will pay $12 per outstanding Cellu share, and $350 million in debt financing.
Clearwater Paper believes the acquisition will be immediately accretive to earnings per share before taking into account an estimated $15-$20 million in net annual cost synergies expected by the end of 2012.
In connection with the acquisition of Cellu Tissue, Clearwater Paper intends to tender for or defease Cellu Tissue’s outstanding 11.50% senior secured notes due 2014.
Clearwater used BofA/Merrill Lynch as their financial advisor and Pillsbury Winthrop Shaw Pittman LLP as their legal advisor.
Cellu hired Goldman, Sachs & Co. as their financial advisor and King & Spalding as their legal advisor.
The deal is expected to close in the fourth quarter of 2010.
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Morning Movers 09/16: CLU, OCNW, DIGA, HH, FUQI, EDMC, DYP, CCME Higher; HOOK Lower
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Notable Mergers and Acquisitions of the Day 09/15: CLU/CLW, CALX/OCNW, NRG
