Verso Paper Must Sell Two Mills to Buy NewPage

31 Dec 2014 | Author: | No comments yet »

Justice Department: Verso Can Acquire NewPage.

Verso Paper Corp. (VRS:US), an unprofitable paper maker controlled by Apollo Global Management LLC, must sell two mills to proceed with a planned acquisition of NewPage Holdings Inc. (NPGW:US), the U.S. The mills are in Rumford, Maine, and Biron, Wisconsin, and have a combined production capacity of about 940,0000 tons, the Justice Department said today in a statement. The company announced Wednesday, Dec. 31, that the terms require NewPage to sell its paper mills in Biron, Wis., and Rumford, Maine, to a subsidiary of Catalyst Paper Corp., a move both companies had announced in October. Verso, which is based in Memphis, faces declining demand for its coated paper used in magazines amid the rising popularity of tablet computers and e-readers.

With NewPage as part of Verso, the company estimates the combination will mean $3.5 billion in annual sales, with 5,800 employees in eight paper mills across six states. For example, Verso and NewPage would have had about 70 percent of the market for coated label paper in the two countries. “Today’s proposed settlement will ensure that consumers benefit from continuing competition in the sale of coated paper, Assistant Attorney General William J.

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