Management team buys Appleton Coated

Special to The Freeman

Dec. 19, 2014

APPLETON — Appleton Coated announced Friday it has been acquired by Virtus Holdings LLC, a company formed by members of its management team.

Virtus Holdings purchased the company from a subsidiary of Sequana SA, which had been the company’s ultimate parent, according to the announcement. The company will continue to operate under the name Appleton Coated LLC, with no substantial business, personnel or operational changes planned for the immediate future, according to the announcement.

“We are excited about our plans for the future of the company and are very grateful to our customers, suppliers, and employees who have stood with us through the sales process,” said Doug Osterberg, Appleton Coated’s chief executive officer, in a statement. “Additionally, this now makes Appleton Coated an American-owned company.”

To assist the management team with the acquisition, the Wisconsin Economic Development Corporation is providing Appleton Coated with a $4 million loan for the purchase of equipment, according to the announcement.

Under the terms of the loan, Appleton Coated must keep the existing 570 jobs and create 27 new jobs. Up to $1 million of the loan may be forgiven depending on how many jobs are created and retained over the next five years.

“WEDC is pleased to play a key role in helping the management team of Appleton Coated ensure that the company remains successful for years to come,” said Reed Hall, secretary and CEO of WEDC, in a statement. “The paper industry is a critical part of the past, present and future in the Fox Valley, and WEDC’s support will help ensure the industry’s strength.”

Appleton Coated’s corporate headquarters and manufacturing facility are located in Combined Locks. The manufacturing facility has an annual production capacity of 400,000 tons on three paper machines, and an adjacent coating and finishing complex with processing capacity of 280,000 tons.