(Reuters) - Coated paper producer Verso Paper Corp (VRS.N) said it would buy privately held NewPage Holdings Inc for $1.4 billion.
The combined company will have annual sales of about $4.5 billion and 11 manufacturing facilities located in six states.
NewPage shareholders will receive $250 million in cash and $650 million in notes. They will also receive a roughly 20 percent stake in Verso.
Reporting by Swetha Gopinath in Bangalore; Editing by Don Sebastian