NewPage Adds Stora Enso NA
MIAMISBURG, OH—It’s been a good year for NewPage Corp.
After using a complaint to knock several Asian coated free sheet sources down a peg via countervailing duties imposed by the U.S. Commerce Department this past summer, the former MeadWestvaco set it sights on acquiring a company that had its own issues with paper pricing.
On September 21, NewPage announced it had signed a definitive agreement in which its parent company, NewPage Holding, will acquire Stora Enso’s paper manufacturing operations in North America. The deal is for a cool $1.5 billion in cash, a $200 million note, and a 19.9 percent equity interest in the new company.
The acquisition is expected to close during the first quarter of 2008.
In 2006, Stora Enso North America generated $2 billion in revenues and an adjusted EBITDA of $295 million. During that same period, the combined company would have generated $4.1 billion on a proforma basis.
The deal is expected to generate about $265 million in annualized cost savings.
Earlier this year, Stora Enso Oyj was acquitted of charges in the United States that it participated in a paper price-fixing conspiracy.