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Verso to sell two mills in Wisconsin, Maine

VERSO CORP. HAS announced plans to sell mills in Stevens Point, Wis., shown here, and Jay, Maine, to Pixelle Specialty Solutions LLC for $400 million.

MIAMISBURG, Ohio — Verso Corp. said today it plans to sell mills in Stevens Point, Wis., and Jay, Maine, to Pixelle Specialty Solutions LLC for $400 million.

Verso’s board of directors has approved the sale, which is waiting for stockholder approval. The deal is expected to be completed in the first quarter of 2020.

“We have undergone a thorough and comprehensive strategic process and firmly believe that the sale of these two mills at the agreed-upon terms and conditions is in the best interests of the company and our stockholders,” said Gene Davis, co-chairman of the board.

Net cash proceeds of the transaction are anticipated to be approximately $336 million, after the assumption by Pixelle of approximately $35 million of pension liabilities, anticipated working capital adjustments and the payment of transaction related expenses, Verso said in a news release.

Verso also announced that Adam St. John had been named the company’s CEO and appointed as a member of the board. St. John has been senior vice president of manufacturing for all Verso mills. Les Lederer, interim CEO since April, will continue to serve as a senior transaction advisor to the company.

Alan Carr, co-chairman of the board, expressed confidence in St. John’s leadership. “Under Adam’s guidance, we expect that our remaining mills will generate sufficient earnings and cash flow to permit the company to enhance its competitive market position, so as to create future growth and other opportunities,” he said.

Verso operates four other manufacturing facilities, including pulp and paper mills in Quinnesec and Escanaba. Its Androscoggin mill in Jay includes three paper machines and employs about 500 people. The Stevens Point mill has about 240 workers.

Of its remaining mills, Quinnesec lists 430 employees; Escanaba, 880; Wisconsin Rapids, Wis., 940; and Duluth, Minn., 220.

Houlihan Lokey acted as financial advisor and Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to the company in connection with the transaction.

Pixelle produces a broad offering of paper and specialty products at mills in Spring Grove, Penn., and Chillicothe, Ohio.

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