July 22 (Reuters) - Clearwater Paper ( CLW ) has agreed

to sell its tissue business to Sofidel America for $1.06

billion, it said on Monday, as the latter hopes to expand its

paper tissue business for domestic and hygienic use in North

America.

Clearwater, which also makes paperboard for packaging and

food service companies, expects net proceeds of about $850

million from the deal.

The company had been reviewing strategic options for its

tissue business since February in a bid to lower its debt and

invest in its growth.

"The acquisition of Clearwater Paper's ( CLW ) tissue business is

another important milestone... to meet the growing demand for

our products in the United States," Sofidel CEO Luigi

Lazzareschi said.

Clearwater said it intends to deleverage its balance sheet

as well as diversify its paperboard business following the

completion of the deal, expected in the latter part of 2024.