Verso Completes Acquisition of NewPage
Verso Corporation, a leading North American producer of printing and specialty papers and pulp, has announced the completion of its acquisition of NewPage Holdings Inc. The transaction, valued at approximately $1.4 billion, originally was announced on Jan. 6, 2014. With the completion of the NewPage acquisition, Verso will have approximately $3.5 billion in annual sales and approximately 5,800 employees in eight mills across six states.
"The combination of Verso and NewPage creates a stronger, more stable company with an effective strategy to weather industry headwinds and reduce operating costs, while ensuring our customers continue to benefit from the distinctive quality and service that they have come to expect from us," said David J. Paterson, Verso's president and chief executive officer. "We continue to face increased competition from electronic substitution for print and from international producers, but as a larger, more efficient organization with a sustainable capital structure, we are better positioned to deliver solid results despite the industry's continuing challenges."
The combination is expected to result in substantial cost synergies over the next 18 months. "With the complementary asset base and shared strategic focus on coated paper manufacturing, this acquisition represents a relatively low integration risk, so we remain confident that we can deliver the synergies within the expected time frame," Paterson said.
"This combination and the related financial transactions have created value for the securities holders of both companies," said Mark Angelson, chairman of NewPage. "Our customers, our employees and the communities in which they live and work will be in able hands with the new Verso team as they navigate the turbulent waters of this challenging industry. I thank our directors and management for a job well done in safely landing our ship, and wish the Verso team well going forward."
Divestiture of Biron and Rumford Mills