Cleary Gottlieb is representing Stora Enso Oyj, the world’s largest paper company, in the sale of Stora Enso North America to Cerberus Capital Management, L.P. for $2.5 billion. Cerberus is making the acquisition through its portfolio company, NewPage Corporation. The purchase price consists of $1.5 billion of cash, a $200 million promissory note, the assumption of debt, and a 20% equity interest in the combined company. The transaction is expected to close in 2008, and marks the largest sale to a buyout firm since the credit markets dried up in August.
Stora Enso, headquartered in Finland, is the world’s largest integrated paper, packaging and forest products company, producing publication and fine paper, packaging board and wood products. Stora Enso’s sales totaled €14.6 billion in 2006. The Stora Enso Group has some 44,000 employees in more than 40 countries on five continents.
Stora Enso North America is the continent’s leading producer of coated and supercalendered paper. It also manufactures coreboard products as well as specialty paper for packaging and labeling consumer products.
Cerberus is one of the world’s leading private investment firms with approximately $25 billion under management in funds and accounts.
NewPage, headquartered in Miamisburg, Ohio, is a leading U.S. 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.