Loading
Search
NEWS STORIES

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

Wausau Paper Signs Agreement to Sell
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
What We're Working OnSubmitted: 04/25/2018

- Tonight on Newswatch 12:

We introduce you to 3 Marshfield area brothers on the Never Forgotten Honor Flight who found a way to make sure another brother was able to go, even though he passed away just 5 weeks before the trip.

We'll update you on the progress of a VA National Cemetery near Rhinelander that will become one of eight throughout the United States that were chosen for the project.

We'll show you what happened at the preliminary hearing for an Eagle River man accused of sexually assaulting a victim twice after threatening to shoot her in the head.

We'll bring you all this and more tonight on Newswatch 12 - news from where you live.

+ Read More

TOMAHAWK - Lemon Bar and Strawberry Rhubarb Cobbler can be more than just bakery desserts.

They're flavors at one Tomahawk ice cream shop.

The Windmill Ice Cream Shoppe will open its doors at 2:00 p.m. this afternoon.

Owner Pat Berg says a couple of people will be already waiting in line for the door to be opened.

+ Read More

RHINELANDER - Oneida County Sheriff Grady Hartman wants the job for another term.

Hartman submitted his nomination papers to the county clerk's office on Monday.

+ Read More

LINCOLN COUNTY - The Lincoln County Sheriff's office found $1,000 worth of meth in a Merrill man's car. 

Police pulled over the 29-year-old's car because he had a felony warrant for his arrest. The man's name is being withheld until he's been formally charged. 

+ Read More

MACKINAW CITY, MI - Officials say underwater photos show two electric cables were severed in what Michigan's attorney general says was a tugboat anchor strike in the waterway that connects Lake Huron and Lake Michigan.

An investigative team led by the U.S. Coast Guard said Tuesday a remotely controlled vehicle had obtained images of the damage site beneath the Straits of Mackinac. The two severed cables were among six owned by American Transmission Co. that are stretched along the lake floor.

+ Read More

MILWAUKEE - Vice President Mike Pence plans to talk about the Republican tax overhaul during a visit to Milwaukee Wednesday afternoon.

The event is sponsored by a group created to promote President Donald Trump's policies.

+ Read More

Play Video

WASHINGTON D.C. - 33 Korean War Era veterans, 50 Vietnam Era veterans, and 5 World War II Era veterans boarded the 31st Never Forgotten Honor Flight Monday morning. 

"[It's] unbelievable what's going on," said one veteran. 

Flight #8651 left Central Wisconsin Airport Monday morning for Reagan National Airport. From there, police escorts led buses filled with veterans from around north central Wisconsin to visit memorials in Washington D.C. They visited Korean, Vietnam, and Lincoln Memorials.

+ Read More
+ More General News
Search: 





Click Here