Verso to buy NewPage Holdings for $1.4B
Memphis-based Verso Paper Corp. has announced it will purchase NewPage Holdings Inc. in a $1.4 billion deal.
The companies, which together have three mills in Maine, will have combined sales of around $4.5 billion, based on 2012 figures, and 11 manufacturing facilities in six states.
David Paterson, Verso’s president and CEO, said in a press release that joining the companies will increase efficiencies and allow them to fend off challenges from electronic publishers and international producers. Verso expects that combining the companies will result in $175 million in cost savings within the first 18 months after the deal closes.
The companies reported each board of directors unanimously approved the sale, which is still subject to regulatory approval. They expect the deal to close in the second half of 2014.
In September 2012, Verso said it had officially canned a previous plan to merge with NewPage.
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