Clearwater Paper Corp. has agreed to acquire Graphic Packaging Holding Co.'s paperboard manufacturing facility in Augusta, Georgia, in a transaction valued at $700 million. 

The transaction is expected to be completed in the second quarter of this year, pending regulatory approval. 

According to a joint release from Clearwater Paper and Graphic Packaging, the August mill has an annual capacity of about 600,000 tons of bleached paperboard, which represents a substantial increase in capacity for the Spokane-based paper-products maker. Last year, Clearwater Paper sold about 751,500 tons of paperboard, down from about 814,600 tons in 2022. 

Julia Joy, director of corporate communications at Clearwater, says the company employs about 3,000 people at 12 locations throughout the U.S. She declines to disclose employment data about the Augusta facility. 

Clearwater Paper also reported fourth-quarter net income of of $17.6 million, or $1.04 a diluted share, up compared with a net loss of $5.9 million, or 34 cents a share, in the year-earlier quarter. The company attributed the improved earnings to “solid operational results” and continued strength in the tissue market.

The company reported a 3% increase in retail tissue sales volume for 2023, to 317,600 tons from 309,700 tons in 2022. 

At the close of business today, Feb. 21, stock in Clearwater (NYSE: CLW) closed at $36 a share, up from $34.77 a share at market close the previous day and closer to its 52-week high of $39.40 than its 52-week low of $29.22.