Hicks Acquisition Company II Inc (HKAC) Wednesday announced that it has signed a definitive agreement with Appleton Papers Inc, wherein Appleton will engage in a business combination with Hicks Acquisition Company II.
The business combination has been valued at $675 million and the combined entity is proposed to be listed in the Nasdaq Stock Exchange.
Appleton is a leading manufacturer of specialty high value-added coated paper products and a provider of proprietary encapsulation applications.
Hicks Acquisition Company II is a special purpose acquisition company founded and headed by Thomas O. Hicks with approximately $149.3 million of cash in trust.
As per the terms of the proposed business combination, Hicks Acquisition Company II intends to invest the net cash held in trust to acquire an equity interest in Appleton.
On the other hand, Appleton will be using the proceeds to partly reduce the amount of debt outstanding, incur capital expenditures to facilitate growth initiatives, and also reduce the amount of warrants outstanding or else use a part of the proceeds for general corporate purposes.
Thomas O. Hicks, founder and chairman of Hicks Acquisition Company II, commented, "We are tremendously pleased to be partnering with Appleton, its management team and its employee-owners. Appleton is a true leader in its markets with a broad and diverse product line, globally respected brands, a legacy of innovation and a world-class management team……..".
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