Consolidated to Buy Rival for $674 Million

Consolidated Papers Inc. said it agreed to buy the Wisconsin paper operations of a troubled Canadian firm in a $674-million deal that will strengthen its position as the biggest U.S. producer of coated printing paper. Consolidated Papers will pay $227 million in cash and assume $447 million in debt to buy Repap Wisconsin Inc., a Kimberly, Wis., maker of coated papers, from Repap Enterprises Inc. Montreal-based Repap Enterprises has suffered in recent years from heavy debts and weak demand for coated paper. Repap’s British Columbia pulp-making unit in March sought protection from creditors. Repap Wisconsin, with capacity to make 508,000 tons of coated paper a year, had 1996 sales of $405 million and about 1,000 employees. Its papers are used in brochures, advertising inserts, annual reports and magazines. Consolidated shares fell 19 cents to close at $56.44 on the New York Stock Exchange.