Swedish paper maker BillerudKorsnäs is to acquire North American coated paper producer Verso and convert one of its facilities into a paperboard production site.
As part of its aim to expand in North America, BillerudKorsnäs is to purchase coated paper producer Verso for $825m in cash. The Swedish paper producer will convert Verso’s Escanaba, Michigan mill – its largest site – into a paperboard production facility.
“The combination of BillerudKorsnäs’ expertise in high-quality virgin fiber packaging materials and Verso’s attractive assets creates an excellent platform for long-term profitable growth. We will obtain cost-effective production of coated virgin fibre material in the Midwestern United States. We also plan to sequentially transform part of the business into paperboard production,” said Christoph Michalski, President and CEO of BillerudKorsnäs.
The transaction is set to close in the second quarter of 2022.
Verso posted net sales of $1.26bn for the 12 months ending September 30, 2021.