Private equity fund makes offer to purchase Verso
The publicly-traded company had to recently close a large Wisconsin-based mill
MADISON, Wis. -- Verso Corporation confirmed that it received a buyout offer on July 14 for the whole company for $580 million from a private equity fund. Verso did not immediately comment on the offer, which came from Atlas Holdings, LLC.
The offer comes as Wisconsin government officials and forest products businesses are attempting to formulate a strategy to reopen the massive Verso pulp and paper mill in Wisconsin Rapids, which closed in June, 2020.
Verso has struggled to be profitable in recent years, particularly after the Covid-19 pandemic hit. But the company came close to breaking even in 2020 (despite Covid) with $1.359B in sales, losing only $100,000 in the process. Verso has had only $4 million in debt, increasing its acquisition appeal.
Atlas bid $20 per share for Verso’s stock, which closed at $19.17 after the offer was reported.
Atlas Holdings of Greenwich, Connecticut has investments in four other forest products companies: Marcal, a towel and tissue, manufacturer; Millar Western, a specialty high yield pulp company, New Wood Resources, which makes plywood and veneer; and Twin Rivers Paper Company, which mills lumber and makes, packaging, pulp and paper.