Sveriges BillerudKorsnäs AB acquires Verso Corporation (VRS) for USD 825 million; Share Soar Pre-Market
On December 19, the North American specialty paper manufacturer Verso Corporation (VRS) announced that Sveriges BillerudKorsnäs AB will acquire the company for approximately $ 825 million. Before the stock market today, the VRS share rose by 32.17% in value.
Transaction Details
According to Verso, BillerudKorsnäs “will acquire all outstanding shares in Verso for a purchase price of $ 27 per share in cash, or approximately $ 825 million.” The purchase price corresponds to a premium of approximately 35%, compared with Verso’s closing price on December 17, 2021. Verso’s Board of Directors has unanimously approved the deal, which is expected to be completed during the second quarter of 2022.
BillerudKorsnäs’ North American strategy
BillerudKorsnäs plans to create cost-effective and sustainable cardboard platforms in North America by “converting several of Verso’s assets into cardboard machines while maintaining Verso’s position as a quality and cost leader in specialty paper and coated free paper.”
CEO’s comments
“With the support of our talented team, Verso has successfully streamlined our operations and reduced costs while investing strategically in projects to improve our ability to support our customers,” said Verso CEO Randy Nebel. “This transaction builds on our significant advances and better positions the combined company to invest in our North American manufacturing capabilities, provide high quality paper products to customers and accelerate growth.”
VRS has a total score of 61. Find out what this means for you and get the rest of the ranking on VRS!
Verso Corp is a North American manufacturer of printing paper, specialty media and pulp. The company produces a wide range of paper products, including coated free sheets, coated sandpaper, digital coated, inkjet, supercalendered and uncoated free sheets. These paper products are mainly used in media and marketing applications, such as catalogs, magazines, advertising brochures and annual reports. The company also sells kraft pulp, which is used for the manufacture of tissue paper and printing and writing paper; However, the Group receives the majority of its revenues from its paper products.
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