Potlatch completes spin-off 

Potlatch Corp. on Dec. 16 completed the previously announced spin-off of its pulp-based businesses into Clearwater Paper Corp., a publicly traded company formed earlier this year. Clearwater employs about 1,700 in Lewiston, spokesman Matt Van Vleet said.

“As a result of the spin-off, Potlatch will now be able to devote its attention and resources to leveraging the competitive strengths of the company as an essentially pure-play REIT that is well-positioned to unlock significant value for shareholders,” Potlatch Chairman, President and CEO Michael Covey said in a release.

Potlatch is a real estate investment trust that owns about 1.6 million acres of forestland in Arkansas, Idaho, Minnesota and Wisconsin. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary. Potlatch stock (NYSE: PCH) traded between $25 and $26 as of late morning Dec. 17 compared to a one-year range from $20.29 to $54.79.

The spin-off was completed through a distribution of one share of Clearwater Paper’s common stock for every 3.5 shares of Potlatch stock held by shareholders as of Dec. 9, The Associated Press reported. The companies are based in Spokane.

Shares of Clearwater Paper started trading on the New York Stock Exchange Dec. 17 under ticker symbol CLW. The stock opened at $16.95.

“As a stand-alone company with direct access to the public capital markets and greater flexibility, Clearwater Paper has the ability to leverage its distinct strengths and unique operations to pursue future growth opportunities, particularly in the attractive product segments of private-label tissue and bleached paperboard,” Gordon L. Jones, president and CEO of Clearwater Paper, stated in a release. “We have assembled an experienced and talented management team, and we look forward to building on our solid position in the industry and implementing strategies that we believe will deliver long-term value to our shareholders.”

Clearwater Paper manufactures bleached paperboard, consumer tissue and wood products at six U.S. facilities. The company supplies private-label tissue to major retail grocery chains, and also produces bleached paperboard used by printers and packaging converters. The company employs 2,400.

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