Verso Corporation has just announced that it has completed the sale of its Androscoggin Mill, located in Jay, Maine, and its Stevens Point Mill, located in Stevens Point, Wisconsin, to Pixelle Specialty Solutions LLC ("Pixelle").
"We are pleased to have completed the sale of our Androscoggin and Stevens Point mills to Pixelle," said Verso Chief Executive Officer Adam St. John. "After the transaction, we will continue to be a debt-free company with significant manufacturing and financial flexibility, well positioned to enhance our competitive market position, effectively respond to industry trends and take advantage of low-risk, high-return opportunities that should create long-term value for all of our stakeholders."
"With the sale of the Stevens Point and Androscoggin mills, we will now focus on the growth and enhancement of our pulp and packaging products as well as the specialty products produced at our remaining mills," said Verso President Mike Weinhold. "Our experienced, knowledgeable employees combined with our flexible manufacturing capabilities and unmatched commitment to innovation, product performance and service position Verso as a supplier of choice in North America and beyond."
Verso is a leading North American producer of graphic and specialty papers, packaging and pulp. The Company's Duluth, Escanaba, Quinnesec and Wisconsin Rapids mills have a combined annual production capacity of 2 million tons of paper.
The Company will promptly announce how it plans to utilize no less than $225 million and up to $282 million of the net cash proceeds from the transaction for the benefit of stockholders. Verso also plans to utilize a portion of the net cash proceeds in 2020 to reduce its remaining unfunded pension liability.
Houlihan Lokey acted as financial advisor to the Company and Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to the Company in connection with the transaction.