APPLETON, Wis., July 13, 2012 /PRNewswire/ -- Appleton Papers
Inc. ("Appleton") and Hicks
Acquisition Company II, Inc. (HACII) (Nasdaq: HKAC), 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.
About Appleton
Appleton creates product
solutions through its development and use of coating formulations,
coating applications and Encapsys microencapsulation technology.
The company 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. For more
information, visit www.appletonideas.com.
About Hicks Acquisition Company II, Inc.
Hicks Acquisition Company II, Inc. is a special purpose
acquisition company launched in October
2010 through an initial public offering that raised
$150 million of gross proceeds.
Founded by Thomas O. Hicks, HACII
was formed for the purpose of effecting a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses. It
currently has no operating business.
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Words such as "expect,"
"estimate," "project," "budget," "forecast," "anticipate,"
"intend," "plan," "may," "will," "could," "should," "poised",
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements in this press release
include matters that involve known and unknown risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance or achievements to differ materially from
results expressed or implied by this press release. Such risk
factors include costs and potential liabilities of Appleton relating to environmental regulation
and litigation (including Lower Fox River); potential failure of
Appleton's former parent to comply
with its indemnification obligations; costs of compliance with
environmental laws; Appleton's
substantial amount of indebtedness; the ability of Appleton to develop and introduce new and
enhanced products, improve productivity and reduce operating costs;
Appleton's reliance on a
relatively small number of customers and third parties suppliers;
the cessation of papermaking and transition to base stock supplied
under the long-term supply agreement with Domtar Corporation; the
global credit market crisis and economic weakness; competitors in
its various markets; volatility of raw materials costs;
Appleton's underfunded pension
plans; future legislation or regulations intended to reform pension
and other employee benefit plans. Actual results may differ
materially from those contained in the forward-looking statements
in this press release. Appleton
undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances
occurring after the date of this press release. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
SOURCE Appleton