Official Site of the Government of Stevens Point, Wisconsin

City approaches Stora Enso's Sale with Optimism September 21, 2007 Today Stora Enso signed a definitive agreement to sell Stora Enso North America, Inc. (SENA), its North American subsidiary, to NewPage Holding Corporation (NewPage) a North American coated paper producer. The combined company, to be called NewPage, will be among the leading paper producers in the industry. "I am optimistic about the sale. NewPage Corporation is a producer of coated papers and an industry leader. Their presence here could mean more opportunities for our community. We plan to be flexible and will work closely with the new management group to keep and grow jobs in the area," stated Mayor Andrew Halverson. "Although the city was not involved in the decision, nor alerted prior the final decision, at this time there is no reason to believe that this sale will have a negative impact on the community" Halverson said. "We believe that by combining Stora Enso's North American operations with those of NewPage, owned by Cerberus Capital, a leading private investment firm, we are contributing to the formation of a highly attractive player in the North American paper industry," said Jouko Karvinen, Stora Enso Group CEO in a formal release made earlier today. The city welcomes a dialog with the new owners and will make it a priority to create a strong partnership with the NewPage Corporation. Although a formal meeting has not yet been established, the Mayor's office is extremely sensitive to the needs of the employees, families, and the community affected by the sale and will work diligently to disclose the proposed plans of NewPage. ABOUT THE SALE Transaction consideration consists of USD 1 500 million (EUR 1 080 million) in cash, USD 200 million (EUR 144 million) in vendor notes, and 19.9% of the shares in the new company valued at approximately USD 370 million (EUR 267 million). NewPage will also assume net liabilities of about USD 450 million (EUR 324 million). The transaction is expected to be finalized during the first quarter of 2008, subject to customary regulatory approvals. ABOUT NEWPAGE NewPage Corporation, headquartered in Miamisburg, Ohio, is a leading US producer of coated papers in North America. The company produces coated papers in sheets and rolls with many finishes and weights to offer design flexibility for a wide array of end uses. With more than 4,300 employees, NewPage operates integrated pulp and paper manufacturing mills located in Escanaba, Michigan; Luke, Maryland; Rumford, Maine; and Wickliffe, Kentucky; and a converting and distribution center in Chillicothe, Ohio.

Search this Site	Site Index	Departments	Home