The acquistion will accelerate Billerud Korsnäs' growth in North America. Verso common stock ceased trading on the New York Stock Exchange prior to the opening on 31 March, according to Billerud Korsnäs.
Sweden’s packaging paper and board company Billerud Korsnäs has finalised the acquistion of US pulp, graphic and specialty paper company Verso Corporation for a purchase price of $825m in cash. Verso was consolidated into the accounts of Billerud Korsnäs as of 31 March 2022 and included into the business division Paper. Combined net sales for Billerud Korsnäs and Verso in 2021 reportedly amounted to approximately SEK37bn.
Verso common stock ceased trading on the New York Stock Exchange prior to the opening on 31 March, according to Billerud Korsnäs. All conditions for the takeover, including regulatory approval, had been fully met on 29 March.
The acquisition of Verso is said to accelerate Billerud Korsnäs’ growth in North America. The company announced it was committed to “continuing to serve Verso’s customers across all segments and realising its previously announced plans to convert several of Verso’s assets into paperboard machines, while maintaining Verso’s position as a quality and cost leader in speciality and coated paper.”
The conversion of two fine paper machines into cartonboard machines at Verso’s Escanaba mill would result in annual production capacity of 1.1 million tpy by 2029. After completion of the project, Billerud Korsnäs will become one of the leading folding boxboard producers in North America.
Billerud Körsnäs to change its name to Billerud
Going forward, Sweden’s packaging paper and board manufacturer intends to simplify its company name and brand to Billerud. The company would operate under the new name in all its markets, including the US, Billerud Korsnäs explained.