01.14.15
Verso Paper Corporation has acquired NewPage Holdings, a specialty paper company that emerged from bankruptcy in 2012, in a deal valued at $1.4 billion. The acquisition, which is subject to regulatory approval, is expected to close later this year.
“The combination of Verso and NewPage will create a stronger business that is better positioned to serve our customers and compete in a competitive global marketplace,”says David Paterson, Verso’s president and chief executive. “We continue to face increased competition from electronic substitution for print and international producers, but as a larger, more efficient organization with a sustainable capital structure, we will be better positioned to compete effectively and deliver solid results despite the industry’s continuing challenges.”
Verso and NewPage expect that efficiencies between the two companies will yield at least $175 million in pretax cost savings, according to the statement. NewPage, which filed for Chapter 11 bankruptcy in 2011, reported $3.1 billion in net revenue the next year. Verso reported revenue of $1.5 billion in 2012. T
The merger leaves Verso with approximately $3.5 billion in annual sales and 5,800 employees in six states. Once the transaction is complete, the companies will operate 11 manufacturing plants in six states.
Robert Mundy, Verso’s senior vice president and chief financial officer, says he does not expect layoffs at any of the mills.
“The combination of Verso and NewPage will create a stronger business that is better positioned to serve our customers and compete in a competitive global marketplace,”says David Paterson, Verso’s president and chief executive. “We continue to face increased competition from electronic substitution for print and international producers, but as a larger, more efficient organization with a sustainable capital structure, we will be better positioned to compete effectively and deliver solid results despite the industry’s continuing challenges.”
Verso and NewPage expect that efficiencies between the two companies will yield at least $175 million in pretax cost savings, according to the statement. NewPage, which filed for Chapter 11 bankruptcy in 2011, reported $3.1 billion in net revenue the next year. Verso reported revenue of $1.5 billion in 2012. T
The merger leaves Verso with approximately $3.5 billion in annual sales and 5,800 employees in six states. Once the transaction is complete, the companies will operate 11 manufacturing plants in six states.
Robert Mundy, Verso’s senior vice president and chief financial officer, says he does not expect layoffs at any of the mills.