Logout
Click here for Pulp & Paper Radio International
The Paperitalo Library
Free Downloads
Search
My Profile
Login
NewPage Completes Acquisition of Stora Enso's North American Business
Print
Miamisburg, Ohio, USA, 21 December 2007 -- /PRNewswire/ -- NewPage Corporation today announced the completion of the previously-announced acquisition of Stora Enso Oyj's (NYSE:SEO) North American paper manufacturing operations.

"NewPage, majority owned by Cerberus Capital Management, completed the USD 2.556 billion financing arranged by Goldman Sachs in one of the most difficult credit markets in memory," said Mark A. Suwyn, NewPage chairman and chief executive officer. "This speaks well of the soundness of the business combination, the quality of the management team, and the strength of the support we've received from Cerberus and Goldman Sachs. This news is very exciting for the business. We've achieved regulatory approvals and other milestones more quickly than anticipated, and therefore were able to close ahead of schedule."

The combined product portfolio is the broadest in North America. The new organization will have approximately USD 4.3 billion in pro forma net sales for the last 12 months ended 30 September 2007, and exceptional platforms in the company's core businesses including coated freesheet, coated groundwood, supercalendered, and specialty papers. These papers are used for corporate collateral, high-end advertising brochures, magazines, catalogs, books, coupons, inserts, packaging applications, and direct mail advertising.

"We have an excellent senior leadership team in place and are creating new opportunities for our employees to grow and succeed. We know there are many challenges ahead of us, but we believe we're well positioned for success and look forward to making the company prosper and grow," said Richard D. Willett, president and chief operating officer of NewPage. "With this combination and the powerful businesses it creates, NewPage has improved its ability to meet the needs of its customers with the high quality customer service and products they've come to expect from both companies. This should also enable us to deliver higher returns on investment and meet our return on capital goal. Our plan to achieve USD 265 million in annualized cost synergies is just the first step toward that goal."

NewPage operates 12 paper mills, with 26 paper machines, in Kentucky, Maine, Maryland, Michigan, Minnesota, and Wisconsin in the United States, and in Nova Scotia, Canada. These mills have a total annual production capacity of approximately 5.5 million tons of paper, which includes 4.3 million tons of coated paper, 920,000 tons of uncoated paper, 300,000 tons of specialty paper, as well as 3.2 million tons of pulp. NewPage is now the largest manufacturer of coated paper in North America, based on capacity. Additional information about the company, locations, and products is available on the NewPage Web site, www.NewPageCorp.com.

Goldman, Sachs & Co. acted as exclusive financial advisor to NewPage Corporation and Goldman Sachs and its affiliates acted as sole lead arranger and sole bookrunner on the financing. Schulte Roth & Zabel LLP acted as legal advisor to NewPage Corporation.

As a result of the transaction, affiliates of Cerberus Capital Management, L.P., and certain members of NewPage management own, in the aggregate, 80.1% of the outstanding capital stock of NewPage Group Inc., the indirect parent entity of NewPage Corporation. Stora Enso Oyj owns the remaining 19.9% of outstanding capital stock.

About Cerberus

Established in 1992, Cerberus Capital Management, L.P., along with its affiliates, is one of the world's leading private investment firms with approximately USD 26 billion under management in funds and accounts. Through its team of more than 275 investment and operations professionals, Cerberus specializes in providing both financial resources and operational expertise to help transform undervalued companies into industry leaders for long-term success and value creation. Cerberus is headquartered in New York City, with affiliate and/or advisory offices in Atlanta, Chicago, Los Angeles, London, Baarn, Frankfurt, Hong Kong, Beijing, Tokyo, Osaka, and Taipei. More information on Cerberus can be found at www.cerberuscapital.com.

Source: NewPage Corporation
 

Related Articles:


Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: