A majority of Verso Corp. shareholders have approved the sale of the Androscoggin Mill in Jay to a newly created specialty paper company.
Stockholders representing more than 70 percent of Verso shares voted at the company’s annual meeting Friday in favor of selling two mills – the one in Jay and another in Stevens Point, Wisconsin – according to a Verso news release issued Monday.
The $400 million sale to Pixelle Specialty Solutions was announced last fall. Verso intends to return up to $282 million and not less than $225 million from the sale to shareholders. The sale is expected to close this month.
About 500 people are employed at the Jay mill, and Verso made a multimillion-dollar investment two years ago to convert one of its machines to produce packaging and other specialty papers.
Pixelle, based in Spring Grove, Pennsylvania, was formed in 2018 by investment firm Lindsay Goldberg. With the Verso sale, the company will be the largest specialty paper business in the United States, the company said when it announced the purchase last year.
A Pixelle spokesperson did not immediately respond to an email Monday asking if the company planned to augment or reduce its workforce at the Jay mill, or make any new investment in additional product lines.
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