Based in Miamiburg, Ohio, Verso produces speciality paper products, including release liner papers and label face stock for pressure-sensitive, glue-applied and laminate applications
BillerudKorsnäs has agreed to acquire coated papers producer Verso. (Credit: LordPeppersBest from Pixabay)
BillerudKorsnäs, a Swedish provider of packaging materials and solutions, has agreed to acquire US-based coated papers producer Verso for around $825m in cash.
Under the deal, BillerudKorsnäs will purchase all of the outstanding shares of Verso by paying $27 per share in cash.
Based in Miamiburg, Ohio, Verso produces graphic, speciality and packaging paper and market pulp products.
The company produces speciality paper products, including release liner papers and label face stock for pressure-sensitive, glue-applied and laminate applications.
Verso also manufactures packaging paper used in higher-end packaging and printing applications such as greeting cards, book covers, folders, labels and point-of-purchase displays.
Verso president and CEO Randy Nebel said: “This transaction builds upon our considerable progress and better positions the combined company to invest in our North American manufacturing capability, provide high-quality paper products to customers and accelerate growth.”
As part of the agreement, Verso will be merged with a wholly-owned subsidiary of BillerudKorsnäs.
Upon closing of the deal, the combined company is expected to become one of the largest providers of virgin fibre paper and packaging with a cost and quality advantage.
By converting some of Verso’s assets into paperboard machines, BillerudKorsnäs aims to build one of the most cost-efficient and sustainable paperboard platforms in North America.
BillerudKorsnäs plans to transform Verso’s Escanaba mill into a sustainable and fully integrated paperboard production site.
With a total capacity of around 1,100-kilo tonnes, one machine is expected to be converted by 2025 and a second machine by 2029.
BillerudKorsnäs intends to continue the operations at the Quinnesec mill, in addition to continued paper production in Escanaba during the conversion.
BillerudKorsnäs president and CEO Christoph Michalski said: “The combination of BillerudKorsnäs’ expertise in high-quality virgin fibre packaging materials and Verso’s attractive assets creates an excellent platform for long-term profitable growth.”
Subject to the approval of Verso’s shareholders and the receipt of applicable regulatory approvals and satisfaction of other customary closing conditions, the deal is expected to be completed in the second quarter of next year.