European Paper Concern Acquires Consolidated Paper

Stora Enso Oyj reached an agreement to acquire Consolidated Papers, Inc. in a transaction valued at $ 4.8 billion, including assumed net debt of $900 million. The combined enterprise will be the largest producer of paper and board by capacity worldwide, with total paper capacity of approximately 15 million metric tons.

Within Europe, Stora Enso is one of the two largest producers of lightweight coated and SC paper used in magazines, and coated fine papers used in higher quality publications, such as annual reports and marketing brochures. Consolidated Papers has similar strengths in North America in these three grades. Consolidated Papers’ marketing network will provide additional distribution for approximately 900,000 metric tons of paper currently exported by Stora Enso to the United States.

Stora Enso was formed through the merger of Finnish Enso and Swedish STORA at the end of 1998. Stora Enso is an integrated forest products group that manufactures magazine paper, newsprint, fine paper and packaging boards.

Consolidated Papers is North America’s largest producer of coated paper and SC printing papers, as well as the leading manufacturer of specialty papers. Consolidated Papers operates manufacturing facilities in Biron, Kimberly, Niagara, Stevens Point, Whiting and Wisconsin Rapids, Wisconsin, as well as in Duluth, Minnesota.