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Verso (VRS) Set to Close Merger With BillerudKorsnas AB
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Verso Corporation announced that following the receipt of approvals from the Nuclear Regulatory Commission and the Public Service Commission of Wisconsin, it has now cleared all the hurdles to complete its previously announced merger with BillerudKorsnäs AB (BillerudKorsnäs). It is expected to close on Mar 31, 2022.
Earlier this month, the company had announced that its shareholders had approved the merger agreement. The merger deal got approval by roughly 98.5% votes cast, which reflects approximately 73% of Verso's outstanding common shares.
In December 2021, Verso entered into this agreement, per which, BillerudKorsnäs had agreed to acquire all outstanding shares of the company for a cash payment of $825 million. Verso will enable BillerudKorsnäs to expand its presence in North America and provide avenues of growth for the next 10 years and beyond.
BillerudKorsnäs plans to build one of the most cost-effective and sustainable paperboard platforms in North America by converting Verso's several assets into paperboard machines. It will convert the company’s largest facility, Escanaba Mill, into a top-notch, sustainable and fully-integrated paperboard production site.
Through this deal, the newly-formed company will be well-poised to invest in Verso’s North American manufacturing capability, offer high-quality paper products to customers and accelerate growth. This transaction enhances Verso’s shareholders' value with considerable premium and immediate and certain value.
The combined company will be one of the largest providers of virgin fiber paper and packaging. BillerudKorsnäs' proficiency in high-quality virgin fiber packaging materials and Verso's efficient assets base will generate long-term profitable growth.
Verso recently reported fourth-quarter 2021 results. Adjusted earnings per share of 73 cents beat the Zacks Consensus Estimate of 67 cents and marked a turnaround from a loss of $1.84 per share in the prior-year quarter, driven by improved sales and operations. Revenues of $328 million surpassed the Zacks Consensus Estimate of $298 million and rose 4.5% year over year. This was aided by favorable price/mix, partially offset by $43 million in declined sales, primarily attributable to the sale of Duluth and idled Wisconsin Rapids mills.
Price Performance
Image Source: Zacks Investment Research
In the past year, Verso’s shares have surged 84.7% against the industry’s decline of 3.9%.
Zacks Rank & Stocks to Consider
Verso currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised upward by 33.3% in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 104% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 58% in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing in one, the average surprise being 23.6%. ASIX has surged 96% in a year. The company flaunts a Zacks Rank #1.
Allegheny, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 26% over a year.
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Verso (VRS) Set to Close Merger With BillerudKorsnas AB
Verso Corporation announced that following the receipt of approvals from the Nuclear Regulatory Commission and the Public Service Commission of Wisconsin, it has now cleared all the hurdles to complete its previously announced merger with BillerudKorsnäs AB (BillerudKorsnäs). It is expected to close on Mar 31, 2022.
Earlier this month, the company had announced that its shareholders had approved the merger agreement. The merger deal got approval by roughly 98.5% votes cast, which reflects approximately 73% of Verso's outstanding common shares.
In December 2021, Verso entered into this agreement, per which, BillerudKorsnäs had agreed to acquire all outstanding shares of the company for a cash payment of $825 million. Verso will enable BillerudKorsnäs to expand its presence in North America and provide avenues of growth for the next 10 years and beyond.
BillerudKorsnäs plans to build one of the most cost-effective and sustainable paperboard platforms in North America by converting Verso's several assets into paperboard machines. It will convert the company’s largest facility, Escanaba Mill, into a top-notch, sustainable and fully-integrated paperboard production site.
Through this deal, the newly-formed company will be well-poised to invest in Verso’s North American manufacturing capability, offer high-quality paper products to customers and accelerate growth. This transaction enhances Verso’s shareholders' value with considerable premium and immediate and certain value.
The combined company will be one of the largest providers of virgin fiber paper and packaging. BillerudKorsnäs' proficiency in high-quality virgin fiber packaging materials and Verso's efficient assets base will generate long-term profitable growth.
Verso recently reported fourth-quarter 2021 results. Adjusted earnings per share of 73 cents beat the Zacks Consensus Estimate of 67 cents and marked a turnaround from a loss of $1.84 per share in the prior-year quarter, driven by improved sales and operations. Revenues of $328 million surpassed the Zacks Consensus Estimate of $298 million and rose 4.5% year over year. This was aided by favorable price/mix, partially offset by $43 million in declined sales, primarily attributable to the sale of Duluth and idled Wisconsin Rapids mills.
Price Performance
Image Source: Zacks Investment Research
In the past year, Verso’s shares have surged 84.7% against the industry’s decline of 3.9%.
Zacks Rank & Stocks to Consider
Verso currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised upward by 33.3% in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once, the average surprise being 3.7%. MOS has rallied around 104% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 58% in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing in one, the average surprise being 23.6%. ASIX has surged 96% in a year. The company flaunts a Zacks Rank #1.
Allegheny, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 26% over a year.