NewPage Corp. and Stora Enso today announced the signing of a definitive agreement by which NewPage will acquire Stora Enso’s North American paper manufacturing operations. Terms of the agreement include Stora Enso receiving $1.5 billion in cash, a $200 million note and 19.9-percent equity interest in the new company. The transaction is expected to close during the first quarter of 2008.
“We are excited about the acquisition as it is clearly part of our strategic vision to lower our overall cost and accelerate our ability to achieve sustainable financial returns above our cost of capital,” says Mark A. Suwyn, chairman and CEO of NewPage. “This is also important in order to help us compete with illegally dumped and subsidized foreign imports.
The new company will retain the NewPage name and will be headquartered in Miamisburg, Ohio.