NewPage to Acquire Stora Enso North America

NewPage Corp. and Stora Enso Oyj have signed a definitive agreement under which the former’s parent company, NewPage Holding Corp., will acquire Stora Enso’s paper manufacturing operations in North America. Stora Enso is to receive approximately $1.5 billion in cash, a $200 million note and a 19.9% equity interest in the new company.

Consolidating the operations is expected to generate approximately $265 million in annualized cost savings. “These cost savings, combined with our increased scale, will enable us to make further high-return investments in lower cost capacity, increase supply chain efficiencies and product availability and enhance environmental leadership,” said Rick Willett, President and COO of NewPage.

The new company will retain the NewPage name and will be headquartered in Miamisburg, Ohio.