Tennessee-based printing papers, specialty papers and pulp manufacturing company Verso Paper has completed the acquisition of its larger rival NewPage Holdings for $1.4bn.
Verso announced that with this acquisition, it will have approximately $3.5bn in annual sales and employ approximately 5,800 people in its eight mills operating across six states.
The company specialises in producing specialty papers used for label and release liner, flexible packaging and technical paper applications.
Verso's mill in Jay and the former NewPage mill in Rumford will be involved in the deal.
According to a statement from the company, Verso said that following the completion of the deal it would also change its name from Verso Paper Corp. to just Verso Corp to signify its plans to diversify beyond paper products to remain viable.
Speaking about the acquisition, Verso's president and CEO David 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 organization with a sustainable capital structure, we are better positioned to deliver solid results despite the industry's continuing challenges."
The two companies had announced their decision for the acquisition on Jan. 6, 2014.
NewPage chairman Mark Angelson said: "This combination and the related financial transactions have created value for the securities holders of both companies.
"Our customers, our employees and the communities in which they live and work will be in able hands with the new Verso team as they navigate the turbulent waters of this challenging industry."
Image: Verso produces specialty papers for label and release liner, flexible packaging and technical paper applications. Photo: courtesy of artur84/freedigitalphotos.net.
