Memphis, TN (NNCNOW.com) --- Verso Paper Corp. announced today that they will acquire NewPage Holdings Inc. in a $1.4 billion transaction.
According to Verso officials, upon closing, the combined company will have sales of about $4.5 billion and 11 manufacturing facilities in six states.
“The combination of Verso and NewPage will create a stronger business that is better positioned to serve our customers and compete in a competitive global marketplace,” said David J. Paterson, Verso’s President and Chief Executive Officer. “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."
According to NewPage, there are currently no plans to close any NewPage or Verso mills as a result of this agreement, however officials say there are still a number of details that need to be worked out.
NewPage is a producer of printing and specialty papers in North America with paper mills in Michigan, Minnesota, Wisconsin, Kentucky, Maine and Maryland.
Verso Paper Corp. is a North American producer of coated papers, including coated groundwood and coated freesheet and specialty products. Verso owns paper mills in Maine and Michigan. Verso's products are used primarily in media and marketing applications.
The sale is expected to close in the second half of 2014.
Posted to the web by Krista Burns