Loading

56°F

56°F

56°F

56°F

54°F

56°F

56°F

58°F

54°F

55°F

58°F

56°F
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

RHINELANDER - The Pioneer Park Historical Complex in Rhinelander opened Saturday for the season.

More than 75 people came to check out the museum in the first two hours it was opened.

It takes a while for workers to get used to working at the complex again.

"We haven't done this since last October, September, you know, and so it's like 'oh okay, how do I do this?'" says Pioneer Park Historical Complex Coordinator Aprelle Rawski.

+ Read More

WOODRUFF - Two events in Woodruff helped raise money for two local groups.

On Saturday there was a craft fair and car show at the Woodruff Town Hall.

The Dr. Kate Museum organized the craft fair.

The money made went to a scholarship the museum gives out.

+ Read More

LAND O' LAKES - The Land O Lakes Area Artisans (LOLA) Center went through some remodeling for its classroom.

After a few months, the classroom is finally finished, and it's being dedicated to a woman who left a big impact on the community.

Friends and family got together to remember Sandra Brown, who shared her love of art with the Land O Lakes community. She passed away in 2010.

Sandra gave her time and skills to areas that didn't have art programs, and they found a way to show their appreciation.

"The space has been enlarged greatly," said LOLA President Lynn Richie. "It was a coffee shop originally. And it's being dedicated to Sandra Hardy Brown, who was instrumental in bringing us money through a memorial fund when she passed away, and it helped kick start our art classes."

+ Read More

EAGLE RIVER - One popular Northwoods tourist destination wants to make it easier for visitors to find information about all the attractions the community offers.

The Eagle River Area Chamber of Commerce and Visitors Center unveiled a new website design recently.

Chamber leaders wanted to make it more convenient for visitors who are already in the area to find something to do.

+ Read More

BOULDER JUNCTION - As the weather gets warmer and fishing season comes into full swing, many people will head out on the water. If you're looking for a little help to snare that big catch, the Boulder Junction Chamber of Commerce is offering its first free fishing seminar Saturday night.

+ Read More

WOODRUFF - A few weeks ago, a fire destroyed the Lakeland Senior Center in Woodruff.

We still don't know how the fire started. We do know, however, that the center probably won't receive insurance money to help pay for the rebuilding process, because, at the time of the fire, the center didn't have insurance.

+ Read More

WAUSAU - Police in Wausau want to find the man who held up a convenience store overnight.

About 1:30 this morning, The Store gas station on Stewart Avenue was robbed by a man  who had a t-shirt wrapped around his face to hide his identity.

+ Read More
+ More General News
Search: 




Click Here