Dunn Paper acquires Ladysmith, Wisconsin mill from Clearwater Paper

Aug. 22, 2018

Dunn Paper, Inc. announced today the acquisition of Clearwater Paper Corporation’s (NYSE: CLW) Ladysmith mill. Based in Ladysmith, Wisconsin, the specialty paper mill is a leading manufacturer of high quality recycled tissue products for the away-from-home segment.

The Ladysmith mill will join Dunn Paper, a premier manufacturer of high-performance, advanced paper materials for lightweight technical food packaging and tissue products sold throughout North America. Dunn currently manufacturers products at six locations across the upper Midwest, East Coast and Ontario, Canada. With the strategic addition of Ladysmith to its portfolio, Dunn expands its capabilities into premium recycled tissue products, while providing additional capacity. The increased production capabilities give Dunn greater flexibility and redundancy to better serve its customers.

Commenting on the deal, Dunn Paper CEO Brent Earnshaw said, "Ladysmith is a critical piece of our strategic growth at Dunn. The additional capacity at Ladysmith will enable faster growth in the specialty tissue/absorbent market and their recycled fiber source is well suited for a variety of applications within the Dunn portfolio."

“We are very excited to be working directly with the Ladysmith team again,” said D’Arcy Schnekenburger, Executive Vice President of Tissue Sales at Dunn Paper. “The business is a great fit with Dunn and will expand our product capabilities and service to customers.”

Dunn Paper is currently owned by Arbor Investments, a specialized middle-market private equity firm. Arbor acquired Dunn Paper in 2016 with the intention of building upon Dunn’s focus on food and consumer products.

“This acquisition adds top quality manufacturing capabilities to our existing Dunn Platform,” added Richard Boos, Partner, Arbor Investments. “Our first two years with the Dunn team have been very successful and complementary acquisitions like Ladysmith will help ensure the continuation of profitable growth.”

Kirkland & Ellis served as legal counsel for Arbor and Dunn Paper in connection with the transaction.