Loading
Search
NEWS STORIES

Wausau Paper Signs Agreement to SellSubmitted: 05/20/2013
Story By WJFW News Team


RHINELANDER - Wausau Paper today announced that it has signed a definitive agreement to sell its specialty paper business to a new company sponsored by KPS Capital Partners L.P. ("KPS"), a New York-based private equity firm with significant experience in the paper industry.

The new company will be known as Expera Specialty Solutions, LLC ("Expera").

KPS, as previously announced, has also entered into a definitive agreement to acquire the specialty paper business of Packaging Dynamics Corporation

("Thilmany"), which operates paper mills in De Pere and Kaukauna, Wisconsin.

Expera will combine the Thilmany business with Wausau Paper's specialty paper business to create a leading North American manufacturer of specialty paper products for the food packaging, industrial, and pressure-sensitive release liner segments.

A collective bargaining agreement covering employees at the Mosinee, Rhinelander, and Kaukauna facilities has been negotiated and ratified.

The collective bargaining agreement and the Thilmany acquisition agreement were both conditions to Wausau Paper entering into its agreement with KPS.

Key highlights of the transaction are as follows:

The transaction will result in net cash proceeds to Wausau Paper of approximately $110 million after settlement of transaction-related liabilities, transaction costs and taxes.

Expera will acquire the assets of Wausau Paper's Rhinelander and Mosinee mills; the assets of the company's Brainerd mill are not included in the transaction.

Wausau Paper will retain defined benefit pension and other post-retirement benefit obligations; however, effective with the closing of the transaction, approximately $41 million of future liability will be eliminated.

Wausau Paper will not hold any equity ownership in Expera.

Wausau Paper will have the opportunity to receive a contingent payment that would be equal to what the holder of a 5% equity interest in Expera would receive if certain performance thresholds and KPS liquidity events occur.

Hank Newell, president and CEO of Wausau Paper, commented, "This transaction accomplishes all of our key objectives: divesting our paper business in a way that creates value for our shareholders, creating a specialty business under new ownership with the scale and product breadth to compete globally, and narrowing our focus to accelerating growth in our tissue business."

The transaction has received required regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act. Other customary conditions to closing, including third party financing, remain.

The Wausau Paper sale to Expera is also conditioned upon Expera completing the acquisition of the Thilmany business.

While the company expects to finalize the transaction in the second or third quarter of 2013, there can be no certainty or assurance about the timing or completion of a transaction.

Mesirow Financial, Inc. and Ruder Ware, L.L.S.C. have been the financial and legal advisors to Wausau Paper.

Text Size: + Increase | Decrease -
| Print Story | Email Story
Sponsored in part by HodagSports.com





 IN OTHER NEWS

Play Video

WABENO - In school classrooms in Wabeno and in the community, the upcoming April 4 referendum is on the mind.

"There is an energy. There is an excitement," said Caroline Lampereur of the Wabeno Home and School Association, which supports the referendum.

Wabeno will ask taxpayers for $1.6 million for each of the next five years to keep its school operating as is.

"We want to maintain all of our operational programs and opportunities that we have for our students, as well as our extracurricular activities," said Wabeno Superintendent Jennifer Vogler.

+ Read More

Play Video

LAND O' LAKES - Picasso, Van Gough, and even Andy Warhol all had to start somewhere.

This month Land O' Lakes Arts displays local students' artwork in a gallery in honor of Youth Art Month. The gallery holds 112 different art pieces from students ranging from kindergarten to eighth grade.

+ Read More

Play Video

ROTHSCHILD -
UPDATE: Everest Metro Police Chief Wally Sparks confirmed one of his officers died and three other people were killed after a shooting with a suspect near Wausau on Wednesday.

Police wouldn't share any of the victims' names or ages, but said the suspect is in custody and no one else is in danger.

The state Department of Justice's Division of Criminal Investigation has been called in to assist local police.  Officers did not take any questions at a brief news conference Wednesday night.  A DCI spokesman said there would be another media briefing either Thursday morning or afternoon.





At least two people were hurt in what police think was a domestic situation in the Wausau area Wednesday afternoon.  That includes a police officer, but Wausau police haven't said yet which department that officer is from or who they are.

The Rothschild Police Department said in a press release that officers were called to the Marathon Savings Bank on E. Grand Avenue around 12:30 p.m.

Officers responding to the scene found two people who had apparently been shot.  The suspect left the scene before police got there.  That led to three total scenes, including a response to what appeared to be a standoff at an apartment complex on Aspen Street and Ross Avenue in Weston.

"This is a complex, ongoing investigation involving three crime scenes and multiple victims of shootings at those locations," Wausau Police Captain Todd Baeten said during an afternoon press conference.

Several police departments from Marathon County responded to the scene.  The Wisconsin Department of Justice's Division of Criminal Investigation has been called in for assistance.

This story will be updated.



+ Read More

Play Video

RHINELANDER - Northwoods students competed in a financial version of March Madness.

Three high schools came together to compete In the Finance and Investment Challenge Bowl today at Nicolet College.

This was the fifth annual Rhinelander Northwoods Regional Tournament.

The goal of the competition was to increase financial literacy around the state.

+ Read More

LONDON - The White House says President Donald Trump has been briefed on a gun-and-knife incident at Britain's Parliament in London.

Trump himself said during a brief appearance Wednesday before reporters at the White House that he was just getting the news. He called it "big news."

+ Read More

PLOVER - Police hope to find a Plover woman who disappeared last week.

Krista M. Sypher, 44, was last seen March 13.  She lives on Hoffman Drive in the Village of Plover.  She did not take her car.

Sypher's cellphone has been off since she disappeared, and she has not contacted family or friends.

+ Read More

MADISON - If you ever wondered if a gallon of gas really is a full gallon of gas, the state of Wisconsin has a handful of job openings that might interest you.

The Department of Agriculture, Trade and Consumer Protection's Weights and Measures division hopes to hire three petroleum systems specialists to fill current vacancies.

+ Read More
+ More General News
Search: 





Click Here