Parent co. of Madison Paper sold
Madison Paper Industries is now under new Finnish ownership, though the impact on its 215 employees is still unknown.
UPM-Kymmene Corp. yesterday completed its $1.3 billion acquisition of Myllykoski Corp., also of Finland and the parent company to Madison Paper, according to a press release. UPM, the world's largest producer of magazine paper, in December announced it would buy Myllykoski and its sister company, Rhein Papier GmbH, acquiring their seven paper mills in Germany, Finland and the United States. UPM said it will decide soon whether it will change operations at Madison Paper and Myllykoski's other facilities, with a decision coming by mid-September. Madison Paper is the town of Madison's largest tax contributor.
The acquisition will boost UPM's presence in Europe and allow it to expand to emerging markets like China, according to the release. The company issued five million new shares to the direct and indirect owners of Myllykoski and Rhein Papier to finance the deal, and has taken on more than $1 billion in long-term debt.
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