No merger for Appleton and Hicks Acquisition Company II
There will be no business combination between the US specialty paper manufacturer Appleton and Hicks Acquisition Company II. The $657m merger deal fails on volatile market conditions.
The business combination announced back in May by Appleton Papers and Hicks Acquisition Company II (HACII), a special purpose acquisition company sponsored by Thomas O. Hicks, has failed. The two companies declared today that they have agreed to discontinue their proposed business combination.
According to Mark Richards, Appleton’s chairman, president and CEO, volatile market conditions had made it impossible to find an acceptable solution for both parties and prevented a deal from being completed.
Appleton planned to merge its business with Hicks Acquisition in a $675m deal and change its corporate name to Appvion upon completion of the transaction. The new company would have been listed on the Nasdaq.
In spite of the transaction not closing, Appleton would proceed with its plans to do business as Appvion as the name reflected the company’s transformation from a paper company to a business focussed on coating formulations and applications, and specialty chemicals, said Richards.
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