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.
APPLETON - The U.S. Marshals Service says a convicted sex offender who was wanted for violating the terms of his release has been arrested in Appleton.
The agency says 63-year-old L.C. Streeter, of Milwaukee, was previously convicted of four separate sexual assaults from 1976 to 1985. Wisconsin committed him as a sexually violent person in 1996, and he remained in treatment until his release in 2013 under intensive supervision.
The service said in a statement that he cut off his GPS and electronic monitoring bracelets and fled supervision on Monday, resulting in a warrant for his arrest. Federal marshals and Appleton police arrested him without incident in Appleton on Friday.
Kevin Carr, the U.S. marshal for eastern Wisconsin, says Streeter was "an absolute danger to the community based upon his past convictions."
TOMAH - The Tomah Veterans Affairs Medical Center says it has adopted another plan to improve patient care.
The La Crosse Tribune reports (http://bit.ly/1QMsDMZ) that Friday's release of the "100-day plan" comes almost 11 months after media reports that veterans at the center were prescribed excessive doses of opioid pain-killers and that employees who spoke out faced retaliation from top officials.
The plan, which follows a 30-day plan announced in May, outlines steps for improving access to care, employee engagement and restoring trust.
Among other things, it calls for recruitment of psychiatric staff, employee forums and listening sessions, and opening an employee wellness center.
Several Tomah VA officials — including former Director Mario Desanctis and former Chief of Staff David Houlihan — have been fired since the problems emerged early this year.
MAUSTON - Authorities are investigating the death of a person who was found unresponsive in Decorah Lake early Friday.
Kyle Lynch, the Wisconsin Department of Natural Resources warden for Juneau County, says he was called to the scene to assist in a boat search about 1:30 a.m. He also says the Mauston Fire Department recovered the body, which was found in the water.
The Mauston Police Department says attempts were made to rescue the individual, but the Juneau County Coroner's Office pronounced the individual dead at the scene. Police have provided few other details, and the victim's name has not been released.
WAUSAU - This has been Wisconsin's deadliest gun-deer season in the past five years, with two shooting fatalities already recorded.
Daily Herald Media reports (http://wdhne.ws/1HvNth3 ) that the two fatalities brought to an end a three-year series of seasons that had been free of firearm deaths. Four other hunters also have been wounded.
According to the Wisconsin Department of Natural Resources, hunters violated some of the fundamental rules of gun safety in all the incidents.
A man was killed last Sunday in Columbia County when he was shot while passing a loaded rifle to a companion in a tree stand. Wearing mittens, she grabbed the gun near the trigger and it went off. On Monday, a hunter in Waushara County was killed by a stray bullet.
RHINELANDER - People deposited more than just money at a Rhinelander bank Friday morning. A blood drive at People's State Bank allowed donors to double down on what they gave.
Nurses from the Community Blood Center took donations from 11 a.m. to 2 p.m. as part of the "Give a Pint, Give a Pound" blood drive. For every pint donated, the Blood Center will give a pound of food to the Lakeland Food Pantry.
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