Appleton merger stopped due to market conditions
The proposed merger between Appleton Papers Inc. (Appleton) and Hicks Acquisition Company II, Inc. has been discontinued. Appleton cited volatile market conditions as a reason why the two companies could not reach a joint deal.
Mark Richards, Appleton’s chairman, president and chief executive officer says, “We entered into negotiations with the best intentions to create a combined business that would strengthen Appleton’s balance sheet, support its business, and give the company greater flexibility to pursue growth opportunities. Achieving those objectives is still part of our strategy going forward, and we will continue to pursue them as market conditions improve.”
Appleton Papers has been a 100 percent employee-owned paper and coating technology company since 2001. Its three locations in Wisconsin, Ohio and Pennsylvania employ approximately 1,700 and produce thermal, carbonless, and security papers and Encapsys products.
Hicks Acquisition Company II, Inc., founded by Thomas O. Hicks in 2010, was created to affect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or business combination with one or more businesses.
In May, Appleton Papers announced plans to do business as “Appvion,” and confirmed the intent to continue with this business idea after the transaction with Hicks Acquisition Company fell through. “Appvion”, a combination of the words “applied” and “innovation” is meant to convey Appleton’s move to a business dedicated to providing coating formulations and applications, and specialty chemicals.
– Rashmika Nedungadi