Verso to buy New Page

The Verso Paper Corporation announced that it would acquire NewPage Holdings, a specialty paper company that emerged from bankruptcy in 2012.

Av Redaktionen Papernet

den 7 januari 2014 00:00

Verso Paper Corpotration announced that they have entered into a definitive agreement under which Verso will acquire NewPage in a transaction valued at 1,4 billion USD.

The combined company will have sales of approximately 4,5 billion USD and 11 manufacturing facilities located in six states in US.

The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close in the second half of 2014, subject to regulatory approvals.

The combination of the two companies is expected to result in at least 175 million of pre-tax total cost synergies, which are expected to be achieved during the first 18 months after completion of the transaction.

“We continue to face increased competition from electronic substitution for print and international producers, but as a larger, more efficient organization with a sustainable capital structure, we will be better positioned to compete effectively and deliver solid results despite the industry’s continuing challenges”, said George F. Martin, President and Chief Executive Officer of NewPage.

Dave Paterson, the CEO of Verso, will lead the combined organization.

At closing, Verso has agreed to appoint to its board of directors a current director of NewPage.

The acquisition, which is subject to regulatory approval, is expected to close in the second half of the year.

On September 7, 2011, the NewPage Corporation filed for chapter 11 bankcruptcy reorganization due to negative cash flow for more than a year. NewPage Corporation announced December 21, 2012, that it has successfully completed its financial restructuring and has officially emerged from Chapter 11 bankruptcy protection.

From a Nordic perspective became NewPage Corporation known when it bought Stora Enso Consolidated Papers in 2007.

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