M&A · Industrials · Paper Mills
AB to acquire Verso Corp
Announced Dec 19, 2021 · Closed Mar 31, 2022
Deal value$825MEV $624M
Premium57.0%To unaffected price
EV / Adj. EBITDA8.8x0.5x EV / Revenue
ConsiderationAll cash$27.00 per share
Transaction
- Acquirer
- AB
- Target
- Verso Corp (VRS)
- Buyer type
- Strategic
- Offer price per share
- $27.00
- Enterprise value
- $624M
- Status
- Closed Mar 31, 2022
Deal protections
- Break fee (target pays)
- $24.7M · 3.0%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Rothschild & Co
- Rothschild & Co fee
- $15.5M
Sector context · Industrials
- Comparable deals
- 50 in the prior 24 months
- Premium
- 57.0% vs. 39.5% sector median
- EV / Adj. EBITDA
- 8.8x vs. 11.9x sector median
- Break fee
- 3.0% vs. 2.8% sector median
Timeline
- AnnouncedDec 19, 2021
- Proxy filedJan 21, 2022
- Definitive proxyFeb 8, 2022
- Shareholder voteMar 11, 2022
- ClosedMar 31, 2022
Valuation · fairness opinions
Discounted cash flow$20.75$27.50
Leveraged buyout$19.00$24.25
Offer $27.00
Implied value per Verso Corp share by analysis, from Rothschild & Co.