Verso Paper Buying NewPage Holdings Inc. in $1.4 Billion Deal
Tuesday, January 7th, 2014 -- 8:19 AM
-Coated papers maker Verso Paper is buying NewPage Holdings Inc. in a deal valued at $1.4 billion including debt.NewPage is headquartered in Ohio and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and here in Wisconsin, including Wisconsin Rapids, Stevens Point and Biron. The company employs about 1,700 workers in Wisconsin.
Privately held NewPage produces printing and specialty papers. Verso is headquartered in Memphis, Tenn.
Verso President and CEO David Paterson said in a statement on Monday that the buyout will put it in a better position to face increased competition. Paterson will lead the combined company, which will have 11 manufacturing plants in six states. A NewPage director will join Verso's board at closing.
The deal was unanimously approved by both companies' boards. It is targeted to close in the second half of the year.
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