Loading

73°F

73°F

77°F

72°F

77°F

74°F

73°F

82°F

77°F
NEWS STORIES

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

Play Video

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: 08/22/2014

- We speak with Reighlee Stevenson's mother. Stevenson was killed in a rollover accident in Marathon County two weeks ago.

- A Minocqua woman turned her hobby into a successful business. We talk to the woman behind the Violet Trunk, and learn what inspires her vintage decorations and home furniture creations.

- And many different things can cause back problems. A back pack that doesn't evenly distribute weight is one of them. Newswatch 12's Karolina Buczek spoke with a chiropractor to find out what backpacks can keep your child's spine healthy.

We'll have the details on these stories and more tonight on Newswatch 12 - news from where you live.

+ Read More
Soldier killed in Afghanistan native of WisconsinSubmitted: 08/22/2014

WISCONSIN RAPIDS - An Army paratrooper who was born in central Wisconsin has died while serving in Afghanistan.

Sgt. First Class Matthew Leggett served with the 18th Airborne Corps at Fort Bragg, North Carolina. Relatives in Wisconsin tell Daily Tribune Media (http://wrtnews.co/1oYbaUC ) that the 39-year-old Leggett was born in Wisconsin Rapids and still has extended family in the area.

+ Read More
New after school program offers 4th, 5th graders tutoring, chance to try new activitiesSubmitted: 08/22/2014

RHINELANDER - This year, fourth and fifth graders can get help with their school work and try new activities through a new after school program.

The Central After School Program (CAP) will be held at Central Intermediate School in Rhinelander. It focuses on fun, learning, and physical activity.

Certified teachers will help kids with their math, reading, and writing. Kids will also get the chance to try new, unique activities.

+ Read More
Price county man is found guilty of killing his wifeSubmitted: 08/22/2014

PRICE COUNTY - A judge found William Rambo guilty Friday of stabbing his wife to death in Park Falls last August.

Rambo asked for an Alford plea. That has the same legal effect as a guilty plea.

Prosecutors think Rambo threatened to stab his wife in early August 2013. They say he did that later that month.

+ Read More
Northwoods woman turns refurnishing furniture hobby into businessSubmitted: 08/22/2014

MINOCQUA - What you might consider junk, buried in the depths of a basement, is treasure for one Northwoods woman.

She took her hobby and turned it into a successful business in Minocqua.

"It was just a really good way for me to relax and I started painting and I find painting very therapeutic. When it's just me in the shop and a beautiful piece that I'm painting it's just, nothing makes me happier than that," said Violet Trunk owner Karen Didonato.

+ Read More
College prepares new students for school yearSubmitted: 08/22/2014

RHINELANDER - Students at Nicolet College in Rhinelander go back to school on Monday.

For some, it's their first day at college.

The college reaches out to new students before their first day.

Leaders want to make sure they're prepared.

"They've received information about how to be successful in college, information about financial aid, information about test taking and other success strategies," says Dean of Students Kate Ferrel. "Every time we communicate with them we also let them know that we're available to chat."

+ Read More
Grant will expand program that offers alternative to incarcerationSubmitted: 08/22/2014

LAC DU FLAMBEAU - The Lac du Flambeau Tribe hopes a large grant will keep those suffering from addiction out of jail.

The more than $870,000 federal grant will expand the Tribe's Zaagiibagaa Healing to Wellness Court.

The program gives non-violent offenders charged with drug and alcohol-related crimes in Vilas County a chance to rehabilitate instead of going to jail.

The Tribe started the court last year.

+ Read More
+ More General News
Search: 




Click Here