Appleton Papers, acquisition company cancel merger
Appleton CEO: Harsh market conditions halt deal
APPLETON, Wis. — Appleton Papers and a Texas-based company have called off their merger.
Appleton CEO Mark Richards said volatile market conditions prevented a deal from being struck that was acceptable to both parties.
When it announced the proposed $675 million deal in May, Appleton said the merger with Dallas-based Hicks Acquisition Company II, led by Thomas O. Hicks, would strengthen the Wisconsin company’s balance sheet and provide capital for growth.
Appleton still plans to change its name to Appvion, as the company announced in May. The name combines the words “applied” and “innovation,” reflecting the company’s transformation from a paper company to a business focused on coatings and specialty chemicals.
Based in Appleton, the company has manufacturing operations in Wisconsin, Ohio and Pennsylvania and employs approximately 1,700 people, including 870 in Appleton.