Weston Presidio-backed Cellu Tissue Holdings (NYSE: CLU) has agreed to be acquired by Clearwater Paper (NYSE: CLW) in a cash deal, which values the tissue product maker at $502 million. CTH shareholders will receive $12 per share of common stock, a 52.6% premium. Weston Presidio and CTH president and CEO Russell C. Taylor own about a 56% percent stake in the company and have agreed to vote in favor of the deal. CTH was acquired by Weston Presidio in a 2006 LBO and later went public in a $107.9 million IPO in January 2010.
PE investors have exited 57 companies in the Materials & Resources industry since the beginning of 2008, according to PitchBook Platform. Exit activity in the industry has bounced back from a measly 5 exits in 2009. So far this year, there have been 20 completed exits and 3 more are still in the works. Additionally, the average exit deal size has experienced a sharp jump from $110.6 million in 2009 to $311.7 million this year, closing in on 2008's $322.9 million. Selling companies to corporations has consistently been the most popular exit method in the industry, accounting for 54.8% of the exits in 2008, 80% in 2009 and 44% in 2010 YTD, but while many investors have exited the space, several are also continuing to invest in the industry. During the same time period, 142 investors invested in Materials & Resources, the most active including Apollo Global Management, H.I.G. Capital and Sun Capital Partners, each with 6 deals a piece.