Kosmos collapsed in 1988 and was taken over by I. M. Skaugen. They aimed at divesting the diversified portfolio in the company in the aim of restructuring Kosmos as a pure shipping company, and placed Saugbrugsforeningen and other assets up for sale. Noegotiations for a sale to Norske Skog commenced on 12 January 1989. The company was valuated at NOK 1.8 billion, although a purchaser also had to carry out the plans for a new paper machine, estimated to cost NOK 3 billion. An important strategic consideration for Norske Skog was that it did not have any production of magazine paper, something the inclusion of Saugbrugsforeningen's production line would allow for. The take-over was approved by the purchaser on 9 November 1989 and effectuated on 1 December. The decision included approval of a new paper machine. Saugbrugsforeningen changed its name to Norske Skog Saugbrugs. Norske Skog paid NOK 460 million in cash and took over NOK 980 million in debt. The remaining NOK 360 million was financed through issuing new shares. Kosmos thus received NOK 820 million from their NOK 100 million investment six years earlier.