View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
March 14, 2022

Verso shareholders approve BillerudKorsnäs merger agreement

The deal is valued at $27 to a share in cash, equalling around $825m in total.

Shareholders of US-based coated paper producer Verso have approved the company’s previously announced merger with Swedish packaging material and solution provider BillerudKorsnäs.

During a special meeting, shareholders voted by around 98.5% to 1.5% to approve the merger. This represented around 73% of the outstanding shares of Verso’s common stock.

The approval comes after BillerudKorsnäs entered an agreement in December last year to purchase all Verso’s outstanding shares for $27 each in cash, amounting to around $825m in total.

Verso specialises in producing packaging paper for higher-end packaging and printing applications, as well as graphic and speciality paper products.

Last year, the company reported net sales of $1.28bn and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $223m.

The deal’s completion is subject to customary closing conditions, including the receipt of approvals from the Nuclear Regulatory Commission and the Public Service Commission of Wisconsin.

It is expected to close by the end of next month.

The transaction secured approval from the State of Wisconsin Department of Health Services on 25 February, while the Federal Energy Regulatory Commission issued an order authorising the deal on 8 March.

BillerudKorsnäs plans to convert Verso’s Escanaba Mill into a sustainable and fully integrated paperboard production site after the merger.

At the time of signing the agreement, BillerudKorsnäs president and CEO Christoph Michalski said: “The combination of BillerudKorsnäs’ expertise in high-quality virgin fibre packaging materials and Verso’s attractive assets creates an excellent platform for long-term profitable growth.

“We will obtain cost-effective production of coated virgin fibre material in the Midwestern United States.

“We also plan to sequentially transform part of the business into paperboard production while continuing to serve the US customers.”

In addition to the merger, Verso’s stockholders have approved other unspecified proposals related to the transaction.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The packaging industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy