Brazilians mull offer for Clearwater Paper's pulp and paperboard operations

Brazil’s Suzano SA is exploring an offer for Clearwater Paper Corp., according to people with knowledge of the matter.

The company is working with an adviser as it seeks to reach an agreement, said the people, who asked not to be identified discussing confidential information. A deal hasn’t been finalized and it’s possible one won’t be reached.

Representatives for Suzano and Clearwater Paper declined to comment.

Clearwater Paper, which is headquartered in Spokane and manufactures pulp and paperboard products, had a market capitalization of $409 million as of Thursday’s close and its shares have fallen 31.6% this year. Clearwater Paper’s shares jumped as much as 19% after the close of regular trading Thursday.

Suzano, which is the largest supplier of hardwood market pulp in North America, has been pushing further into the U.S., most recently buying two paperboard mills in Arkansas and North Carolina in a deal valued at $110 million.

Clearwater Paper recently sold its tissue manufacturing operations to Sofidel America Corp. for $1.06 billion. The tissue operations are located in Lewiston, Las Vegas, Shelby, N.C., and Elwood, Ill.

That transaction didn’t include Clearwater Paper’s pulp and paperboard manufacturing, which is located at Lewiston, Cypress Bend, Ark., and Augusta, Ga., according to the company’s website.

According to past Tribune reporting about the Lewiston mill, about 500 people work in the tissue operation now owned by Sofidel and about 800 work in the pulp and paperboard side still owned by Clearwater Paper.