By Patrick Lynn
Verso Corporation today announced it has agreed to sell two of its paper mills to the Pennsylvania-based Pixelle Specialty Solutions LLC for $400 million.
The sale was unanimously approved by Verso’s board of directors but is subject to the approval of company stockholders, according to a news release from the company. The transaction should be completed by the first quarter of 2020.
The Stevens Point mill, 707 Arlington Pl., produces coated flexible packaging papers, release liner base, thermal papers, and other specialty paper products.
Adam St. John has been named the company’s new CEO, replacing interim chief Les Lederer. Both men will assist with the transition, the company said.
Net proceeds of the sale are anticipated to be about $336 million after Pixelle assumes about $35 million in pension liabilities, the release said.
It was not immediately clear how the acquisition would affect the company’s existing workforce, if at all.
*This story will be updated