American Iron signs deal to acquire mill from Verso Paper

American Iron and Metal (AIM), headquartered in East Montreal, Quebec, has reached an agreement to acquire Verso Paper’s paper mill and related power generation assets in Bucksport, Maine. According to Verso Paper, under the deal, signed Dec. 5, 2014, AIM will purchase the paper company’s assets for $60 million.

Together, Verso Bucksport and Verso Bucksport Power own substantially all the assets comprising Verso’s paper mill, energy facilities and related operations.

The purchase agreement contains customary representations and warranties by the parties, customary covenants among the parties, customary conditions to the parties’ obligations to consummate the transaction and customary rights to terminate the purchase agreement under certain circumstances, according to Verso Paper.

The company says it anticipates the transaction will be completed in January 2015.

On Oct. 1, 2014, Verso, headquartered in Memphis, Tennessee, had announced plans to close the Bucksport mill by the end of 2014. The mill was capable of producing 350,000 tons of coated groundwood paper and 55,000 tons of specialty paper.

In 2013, AIM’s subsidiary, AIM Development, acquired Verso’s Sartell, Minnesota, paper mill. According to a report in Bangor Daily News, AIM Development demolished and redeveloped the site, which had been damaged by a May 2012 explosion and fire.

(photo courtesy of the the Portland Press Herald)