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The A62 paper machine at our Ashdown Mill is once again fully operational thanks to excellent planning and foresight by our commercial paper team, along with outstanding dedication and agility from our manufacturing production team. The strategic initiative to restart the previously idled machine, as well as a sheeter to convert the rolls into cartons of copy paper, is helping us maintain our leadership position in the North American uncoated freesheet paper market and deliver the service and quality our customers expect.
*BillerudKorsnäs has entered into an agreement to acquire Verso for a purchase price of approximately USD 825 million in cash, corresponding to USD 27.00 per share. *Verso is a leading producer of coated papers in North America with reported net sales for the last twelve months ended 30 September 2021 of USD 1 264 million and adjusted EBITDA of USD 158 million. *The purchase price corresponds to an enterprise value / adjusted EBITDA multiple of approximately 6x for the last twelve months ended 30 September 2021. The acquisition will immediately be accretive to earnings per share and create significant shareholder value over time with a more profitable product mix. *BillerudKorsnäs will build one of the most cost-efficient and sustainable paperboard platforms in North America by converting some of Verso’s assets into paperboard machines with an estimated capex of up to SEK 9 billion. *The acquisition and transformation will be financed through a combination of a rights issue of up to SEK 3.5 billion, additional debt and operating cash flow. *The acquisition is expected to close in the second quarter of 2022, subject to the approval of Verso’s shareholders as well as the receipt of applicable regulatory approvals and satisfaction of other customary closing conditions.
American Forest & Paper Association (AF&PA) President and CEO Heidi Brock issued the following statement regarding the Environmental Protection Agency’s (EPA) Boiler Maximum Achievable Control Technology (MACT) proposed rule: “AF&PA is pleased the EPA has moved forward in proposing an achievable Boiler Maximum Achievable Control Technology (MACT) rule. This is the result of more than two decades of work that gives the forest products industry regulatory certainty while encouraging the use of renewable, carbon-neutral fuel. “While limits for several boiler types have become more stringent, we believe they are feasible and affordable. Already, to date, our industry has invested $1 billion in controls to meet Boiler MACT obligations.