Verso merges with pulp, paper manufacturer based in Sweden | News, sports, jobs
MIAMISBURG, Ohio – Verso Corp., the parent company of two UP paper mills, plans to merge with a Swedish pulp and paper manufacturer.
BillerudKorsnäs AB will acquire all outstanding shares in Verso for a purchase price of USD 27 per share in cash, or approximately USD 825 million.
Verso’s Board of Directors has unanimously approved the merger, which is expected to be completed in mid-2022. According to the merger agreement, Verso will be a wholly owned subsidiary of BillerudKorsnäs.
BillerudKorsnäs plans to transform Verso’s largest plant, its Escanaba mill, into a sustainable, fully integrated, world-class cardboard production plant. One machine is expected to be rebuilt in 2025 and another in 2029, with a total capacity of approximately 1.2 million tonnes. The Swedish company estimates that it will invest up to about 1 billion dollars in the conversion.
BillerudKorsnäs plans to continue operating the Quinnesec mill, a cost and quality leader in graphic paper, especially in coated free sheets and specialty paper. The Quinnesec mill has the capacity to produce approximately 430,000 tonnes of graphic paper and specialty paper and 240,000 tonnes of market pulp per year.
The acquisition of Verso is in line with BillerudKorsna’s strategy to drive profitable growth in cardboard and the ambition to expand to North America, officials said. BillerudKorsnäs is committed to continuing to serve Verso’s existing customers.
The offer of $ 27 per share is about 35% more than what Verso’s shares were worth on Friday, the Wisconsin Rapids Tribune reported. However, in July, Atlas Holdings offered to pay $ 20 per share for the company.
In a press release, Verso’s President and CEO, Randy Nebel, said that the committee carefully negotiated the agreement with BillerudKorsnäs, and that Verso’s board members believe that the transaction “maximizes shareholder value.”
“We are pleased to merge with BillerudKorsnäs and take advantage of expanded opportunities as part of a larger, stronger organization,” in Nebel.
BillerudKorsnäs, a manufacturer of packaging products, was founded in 2012 and operates seven production units in Sweden and Finland with approximately 4,400 employees in more than 13 countries, according to its website. It focuses on products that include medicine and hygiene, industry, food and beverage as well as consumer and luxury. The company manufactures liquid board, which is used for beverages and other liquids, as well as board and corrugated board raw material. Its paper products are used in packaging for medical equipment and food.
At a press and analyst conference call on Monday morning, Christoph Michalski, President and CEO of BillerudKorsnäs, said that at this stage the company does not intend to resume production at Verso’s discontinued Wisconsin Rapids mill but is considering the future of that facility.
Michalski, during the conference call, praised the low cost, quality fiber and wood supply in the Upper Peninsula and northeastern Wisconsin, the Wisconsin Rapids Tribune reported.