JAY, Maine — A specialty paper producer in Pennsylvania plans to buy Verso paper mills in Jay, Maine, and Stevens Point, Wisconsin, in a deal worth $400 million.

Ohio-based Verso announced the agreement Tuesday to sell the mills to Pixelle Specialty Solutions, a privately held company in Spring Grove, Pennsylvania.

The deal, which requires stockholder approval, is expected to be completed in early 2020.

The deal calls for a cash proceeds of approximately $336 million; Pixelle also would assume $35 million of pension liabilities and other adjustments. Pixelle said the deal will make it the largest specialty paper business in the U.S. in terms of annual production.

Last summer, Verso announced plans to upgrade two paper machines at Jay's Androscoggin Mill to convert from specialty papers to packaging materials.