JAY, Maine (AP) — A specialty-paper producer in Pennsylvania plans to buy Verso paper mills in Jay, Maine, and Stevens Point, Wisconsin, in a deal worth $400 million.
Ohio-based Verso announced the agreement Tuesday to sell the mills to Pixelle Specialty Solutions, a privately held company in Spring Grove, Pennsylvania.
The deal, which requires stockholder approval, is expected to be completed in early 2020.
The deal calls for cash proceeds of approximately $336 million; Pixelle also would assume $35 million of pension liabilities and other adjustments. Pixelle said the deal will make it, measured by annual production, the largest specialty-paper business in the U.S.
Last summer, Verso announced plans to improve two paper machines at Jay’s Androscoggin Mill to convert from specialty papers to packaging materials.