Appleton Papers drops proposed Hicks merger
Uncertain market conditions have led to the abandonment of a planned merger between Appleton Papers and Hicks Acquisition Company.
A proposed merger between Appleton Papers and Hicks Acquisition Company has been abandoned.
Chairman, president and chief executive of Appleton Mark Richards blamed economic uncertainty for the failure of the transaction.
He said: "Unfortunately, volatile market conditions prevented a deal from being struck that was acceptable to both parties."
While negotiation strategies have failed to reach an agreement with Hicks, Mr Richards said his company is still keen to strengthen its business and increase its flexibility in order to grow.
He added that achieving these objectives remains a key part of Appleton's strategy and it will look to pursue them further as market conditions improve.
The executive also confirmed that despite the merger with Hicks not being completed, Appleton will continue to trade under the name Appvion, which was announced in May and reflects "the company's successful transformation from a paper company to a business focused on coating formulations and applications and specialty chemicals."
Headquartered in Appleton, Wisconsin, the firm employs around 1,700 workers and has been 100 per cent employee-owned since 2001.
Posted by Edel Quinn
Source: Appleton Papers press release, July 13th