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

Play Video

THREE LAKES - More than 1,500 people packed the Don Burnside park in Three Lakes this weekend.

30 teams from all over Wisconsin and the Upper Penninsula of Michigan traveled to compete at the second annual Northwoods Baseball Classic.

The turnout doubled from last year's tournament.

This year another age division was added and people could see the new renovations at the park.

+ Read More

SHAWANO COUNTY - One person died in a one vehicle moped crash Sunday according to the Shawano County Sheriff's Office.

The crash happened around 4:23 p.m. The driver, and lone person on the moped, was pronounced dead at the scene.

The sheriff's office will not release the driver's name at this time. The crash is under investigation. 

+ Read More

Play Video

RHINELANDER - A weekend-long fishing tournament in Rhinelander wrapped up Sunday. It was the 30th annual Charlie Baker Memorial Muskie Tournament. 

The tournament was held on Moen Lake. Charlie Baker worked at the mill and was an area fisherman. A group of people close to Baker named the tournament in his honor after he passed away. 

+ Read More

Play Video

EAGLE RIVER - Republican congressman Sean Duffy won Wisconsin's seventh district by 23 points in 2016, but that hasn't stopped Democrat Margaret Engebretson from running to challenge him in the 2018 election.

Engebretson was at Blend Coffee House in Eagle River Sunday hosting a "Coffee With the Candidate" event.

She spoke about her military background and support for universal Medicaid.

Despite Duffy's advantages as an incumbent, Engebretson believes she can win by offering an inclusive message.

"There are a lot of people not sharing in the bounty of this country," Engebretson said. "They're not thriving and we must do something about it."

Brian Ewert is the only other Democrat running to challenge Duffy. The primary between Engebretson and Ewert is on Aug. 14.

+ Read More

MILWAUKEE (AP) - Some Wisconsin schools will be using gunshot-detection sensors when classes resume this fall to try to get police to respond more quickly to a mass shooting.

The sensors are among various security upgrades schools are rolling out with grant money state lawmakers approved this year after the shootings in Parkland, Florida.

The Kenosha Unified School District plans to use $384,000 of its nearly $900,000 award to install sensors from New Mexico-based EAGL Technology at its 43 schools. The system is designed to alert police within seconds of shots being fired and activate surveillance cameras near their location to livestream the scene to authorities. The sensors can also lock doors after gunshots.

EAGL Technology says the number of schools across the country expressing interest in the sensors has increased since Parkland.

+ Read More

Play Video

LAKE TOMAHAWK - Back in the early nineties, an event in Lake Tomahawk gave thanks to veterans. This year, a group of community members decided to bring it back.

The Vets and Guides event invites veterans from King, Tomah, and other areas to come to Lake Tomahawk for a day of fishing, food, and a good time.

+ Read More

Play Video

ARBOR VITAE - Last summer the Northwoods LBGT community and allies came together to celebrate love, diversity and acceptance.

After last year's successful festival, the Rainbow Hodags planned an even bigger one for this year.

More than 75 people celebrated gay pride at the second annual Pride Fest in Arbor Vitae.

Lots of laughter, live music, and dancing filled the park. 

+ Read More
+ More General News
Search: 





Click Here