US-based Verso Corporation has acquired NewPage for $1.4bn.
Headquartered in Miamisburg, Ohio, NewPage produces and sells printing and specialty papers in North America. Its portfolio of paper products include coated, supercalendered and other uncoated and specialty products that are used in specialty paper applications, including beverage bottle labels, food and medical packaging, pressure-sensitive labels and release liners.
With the acquisition of NewPage, Verso will have close to $3.5bn in annual sales and approximately 5,800 employees in eight mills across six states. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin.
Verso president and CEO David J. Paterson said: "The combination of Verso and NewPage creates a stronger, more stable company with an effective strategy to weather industry headwinds and reduce operating costs, while ensuring our customers continue to benefit from the distinctive quality and service that they have come to expect from us.
"We continue to face increased competition from electronic substitution for print and from international producers, but as a larger, more efficient organisation with a sustainable capital structure, we are better positioned to deliver solid results despite the industry’s continuing challenges."
Prior to this transaction, NewPage divested its paper mill in Biron, Wisconsin, and its pulp and paper mill in Rumford, Maine, to Catalyst Paper Operations, a subsidiary of Catalyst Paper Corporation.