JAY, Maine — Verso Corporation announced the sale of its Androscoggin mill in Jay along with its Stevens Point mill in Stevens Point, Wis., Tuesday morning.
The two mills are being sold to Pixelle Specialty Solutions LLC for $400 million, which is headquartered in Pennsylvania. The company is a manufacturer and supplier of specialty paper and engineered products, according to its website.
The sale was unanimously approved by the company's board of directors and is subject to and conditioned upon the receipt of approval from the company's stockholders at a special meeting of stockholders, as well as certain regulatory and other customary approvals.
The transaction is anticipated to be completed in the first quarter of 2020.
"We have undergone a thorough and comprehensive strategic process and firmly believe that the sale of these two mills at the agreed upon terms and conditions is in the best interests of the Company and our stockholders. We could not be more pleased by the efforts of the entire Senior Leadership Team and of Les Lederer, our Interim Chief Executive Officer since April," according to a statement from Gene Davis, Co-Chairman of the Board.
Verso is expected to net approximately $336 million. The board says it intends to return a significant portion of the net proceeds to stockholders. Verso says it will use approximately $54 million of the net proceeds to reduce a portion of its unfunded pension liability.
Verso also announced a new CEO. Adam St. John had been named as the company's chief executive officer and appointed as a member of the board. St. John has been Senior Vice President of Manufacturing for all Verso mills and a long-standing member of the Senior Leadership Team.