Swedish pulp and paper manufacturer BillerudKorsnäs has completed its acquisition of US-based coated paper company Verso for nearly $825m in cash.
Verso manufactures graphic, speciality and packaging paper and market pulp in North America.
Go deeper with GlobalData
Last year, the company generated $1.27bn in net sales and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $223m.
The addition of Verso is intended to strengthen BillerudKorsnäs’ position within the virgin paper and packaging material markets.
It also supports the company’s strategy to drive profitable and sustainable growth in North America.
The two companies’ combined net sales last year amounted to around Skr37.2bn ($3.9bn).
BillerudKorsnäs president and CEO Christoph Michalski said: “I am very glad to welcome the entire Verso team to BillerudKorsnäs.
“Our combined assets and expertise in high-quality virgin fibre paper and board packaging materials create an excellent platform for sustainable and profitable growth.
“Integration work starts immediately and we look forward to working together, sharing knowledge, initiating preparations for the conversion project and realising a successful development.”
BillerudKorsnäs entered an agreement with Verso to acquire the company in December last year.
Following the acquisition, BillerudKorsnäs plans to convert several of Verso’s assets into paperboard machines, without compromising Verso’s position in the speciality and coated paper segments.
Verso Operations senior vice-president Rob Kreizenbeck has begun serving as BillerudKorsnäs executive management team president in North America.
Kreizenbeck said: “We are excited to join forces with BillerudKorsnäs and become a larger, stronger organisation.
“Together, we are building a company that is passionately committed to a strong safety culture, sustainability, superior quality and delivering value to our customers.”
In a separate development, BillerudKorsnäs is considering plans to change its name to Billerud.
The company’s Board of Directors will propose the amendment at its upcoming Annual General Meeting.
