Stevens Point mill to be sold as part of $400M deal
Verso Corporation will also be selling a Maine mill in the transaction
Madison, Wis. -- Verso Corporation will be selling their Stevens Point specialty paper mill in early 2020, according to a Nov. 12 announcement from the company. The buyer is Pixelle Specialty Solutions, LLC, which is also buying a larger mill in Jay, Maine from Verso in the same $400 million transaction.
Gene Davis, co-chairman of the Verso board of directors, said: "We have undergone a thorough and comprehensive strategic process and firmly believe that the sale of these two mills... is in the best interests of the Company and our stockholders.”
The sale requires the approval of the stockholders along with some regulatory approvals. The transaction should be completed in the first quarter of 2020, according to Davis.
Pixelle is scheduled to assume $35 million in Verso pension liabilities as it purchases the two mills as part of the $400 million price.
Pixelle was formed in 2018 by Lindsay Goldberg, a $13 billion private investment firm based in New York City. Steven Klinger, Executive Chairman of Pixelle, previously served in senior executive positions with two large paper companies, Crown Paper and Smurfit Stone.
Pixelle will become the largest specialty paper company in the U.S. after the transaction. It owns mills now in Chillicothe, OH and Spring Grove, PA.
“Since (Pixelle was formed), we have made significant progress and we believe there are still many opportunities to continue to drive growth and enhance our operations. Through the addition of these two mills, we are positioning Pixelle for the future and look forward to continuing to be the best supplier and partner for our customers.” Klinger said.