SOURCE: Stora Enso Oyj

December 21, 2007 11:07 ET

Stora Enso finalises divestment of its North American paper operations to NewPage

Stora Enso Oyj News Release December 21, 2007 at 15.30 GMT

HELSINKI, FINLAND--(Marketwire - December 21, 2007) - Stora Enso (NYSE: SEO) today announced that on 21 December 2007 Stora Enso finalised the divestment of Stora Enso North America Inc (SENA), its North American subsidiary, to NewPage Corporation ("NewPage"), a leading North American coated paper producer, ahead of the schedule anticipated when the divestment was announced on 21 September 2007.

"We are delighted with the great co-operation between the NewPage and Stora Enso North America teams - as well as Stora Enso and Cerberus - in the very timely closing process. We believe this is a sign of a build-up of a true winning team in North America, which is important for Stora Enso as a minority shareholder," said Stora Enso CEO Jouko Karvinen.

The transaction consideration comprises USD 1 500 million (EUR 1 045 million) in cash (subject to final adjustment for working capital and net indebtedness), in nominal value of USD 200 million (EUR 139 million) in vendor notes and 19.9% of the shares outstanding in the new company valued at approximately USD 370 million (EUR 258 million). NewPage will also assume net liabilities of about USD 450 million (EUR 314 million).

The transaction will generate a loss of approximately EUR 37 million in the fourth quarter of 2007 based on the balance sheet as of the end November 2007 and is therefore subject to fair valuation of pension assets and other final closing adjustments. The final financial effects of this transaction on Stora Enso will be disclosed on 13 February 2008 when Stora Enso's full year results for 2007 are released.

As part of the transaction, Stora Enso will divest eight publication paper, fine paper and speciality paper mills, which will reduce the Group's annual production capacity by 2 745 000 tonnes and the number of personnel by about 4 350. The divested mills are at Biron, Duluth, Kimberly, Niagara, Stevens Point, Whiting and Wisconsin Rapids in the USA and Port Hawkesbury in Canada.

Stora Enso will retain Corenso's North American operations. Corenso produces cores and coreboard for industrial use in various fields of business.

The USD figures are converted at the EUR/USD exchange rate of 1.4349.

About NewPage Corporation

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 centre in Chillicothe, Ohio.

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Contact Information

  • For further information, please contact:
    Tim Laatsch
    Senior Vice President, Communications
    Stora Enso North America
    tel. 715 422 4023