Subjected to stockholder approval, the transaction is expected to be completed in early February this year
US-based coated paper producer Verso has received all necessary regulatory approvals from Federal Energy Regulatory Commission to sell two paper mills to Pixelle Specialty Solutions.
The acquisition follows a definitive agreement signed by the speciality paper manufacturer and supplier Pixelle in November last year to acquire Androscoggin mill and Stevens Point mill.
Subjected to stockholder approval, the transaction is expected to be completed in early February this year.
The Androscoggin mill, located in Jay, Maine, has the capacity to produce approximately 450,000 tonnes of paper annually.
It produces speciality papers used for label and converting, flexible packaging and technical paper applications; packaging papers, as well as kraft linerboard and kraft papers.
Stevens Point mill produces 210,000 tonnes of paper annually
Located in Wisconsin, Stevens Point mill produces 210,000 tonnes of paper annually. It now produces flexible packaging papers used for quick-service food pouches, spiral canisters, bags and many types of wrapping paper.
The mill also produces label papers for bottles, jars, cans and release liners, thermal papers and technical papers for bar code labels and receipts.
Upon completion of the transaction, Verso will focus on its graphic paper production and continue to be a debt-free, streamlined company with significant financial flexibility.
Houlihan Lokey is serving as the financial advisor and Akin Gump Strauss Hauer & Feld is acting as legal counsel to Verso on the transaction.
Pixelle Specialty Solutions has two fully-integrated mills in Spring Grove, Pennsylvania, and Chillicothe, Ohio and a coating facility in Fremont, Ohio of the US.
Earlier this month, Industrial Opportunity Partners (IOP) has acquired Midwest Recycled and Coated Containerboard Mill (Midwest Paper) for an undisclosed amount.
Midwest Paper, located in Combined Locks of Wisconsin, is a paper mill which manufactures and distributes various grades of paper such as recycled containerboard, including medium and linerboard, for corrugated packaging applications.