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Cellu Tissue Holdings, Inc.

cellutissue.com

Cellu Tissue Corporation was founded in 1984 by a group of private investors who purchased a two-paper machine facility in East Hartford, Connecticut. The East Hartford mill produced approximately 16,000 tons of tissue used in the manufacturing of private label bathroom tissue and furniture wadding. In 1986 the company made a strategic move to improve its margins by producing highly engineered tissues for use in the hygiene markets, i.e. baby diapers, adult incontinence products and surgical wadding. In 1992, the principal owner of the company retired and sold Cellu Tissue to a private management investment group, becoming Cellu Tissue Holdings, Inc. In 1995 Cellu Tissue purchased the assets of Coastal Paper Company, a one-machine facility in Wiggins, Mississippi with production capabilities of approximately 25,000 tons per year. Coastal Paper produced 'one time carbonizing' tissue and was in the process of converting it equipment to produce Machine-Glazed (MG) paper for the use in fast food, packaging and laminating markets. This acquisition offered Cellu Tissue product diversification and strategic shipping locations for the Latin American markets. In 1998, Charterhouse Group International, Inc. (a New York-based private equity firm) became principal owner. Cellu Tissue's objectives were to grow business in both the Machine-Glazed and Tissue market segments.

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