Appleton Papers and Hicks Acquisition Drop Proposed Business Combination
July 13, 2012 - Appleton Papers Inc.and Hicks Acquisition Company II, Inc. (HACII). a special purpose acquisition company sponsored by Thomas O. Hicks, announced they have agreed to discontinue their proposed business combination.
"Unfortunately, volatile market conditions prevented a deal from being struck that was acceptable to both parties," said Mark Richards, Appleton's chairman, president and chief executive officer. "Therefore, after consulting with Hicks' management, we have decided to discontinue the transaction."
Richards added, "We entered into negotiations with the best intentions to create a combined business that would strengthen Appleton's balance sheet, support its businesses, 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."
Richards confirmed that, in spite of the transaction not closing, Appleton will proceed with its plans to do business as Appvion, which the company announced in May. The Appvion name combines the words "applied" and "innovation," reflecting the company's successful transformation from a paper company to a business focused on coating formulations and applications, and specialty chemicals.
Appleton produces thermal, carbonless and security papers and Encapsys products. Appleton, headquartered in Appleton, Wis., has manufacturing operations in Wisconsin, Ohio and Pennsylvania, employs approximately 1,700 people and has been 100 percent employee-owned since 2001.
SOURCE: Appleton Papers
See related story:
- Appleton and Hicks Acquisition Agree to $675 Million Business Combination (5/16/2012)