Loading
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

Play Video

EAGLE RIVER - When you think of entrepreneurs you probably think of technology startups or new inventions.

But the Vilas County Economic Development Corporation wants to focus on artists as entrepreneurs as well. 

With the latest business incubator in Eagle River, they've done just that.

+ Read More

Play Video

ANTIGO - World-class athletes hope to etch their names into the history books during the 2016 Summer Olympics in Rio de Janeiro. But all the hard work isn't done by the athletes alone.

"I'm just going to focus on what I'm there for, and that's to do the best I can for my athletes," said Antigo native Dr. Curt Draeger.

+ Read More

LINCOLN COUNTY - We expect an 85-year-old Antigo woman to be charged next month for the death of a Lincoln County highway worker last summer.

According to online court records, Mary Robinson is expected to face a charge of Homicide by Negligent use of a Vehicle.

+ Read More

Play Video

WHITE LAKE - There's a lot of pride in the Village of White Lake.

The people there are proud of their school, proud of their health center, and proud of their history.

"There's just so much history here. It's just a good little place," said White Lake Area Historical Society secretary Judy Popelka. 

+ Read More

WAUSAU - A 43-year-old Marathon County man will go to prison for more than a decade for incest after being convicted in Marathon County court Friday.

Micheal Mayville was originally charged with multiple counts of incest and second-degree sexual assault in two separate cases. Those assault charges were ultimately dismissed.

+ Read More

Play Video

ANTIGO - In one way, Antigo Silt Loam isn't all that special.

"The reason the Antigo Silt Loam soil was selected wasn't that it represented the whole state, or exists throughout the whole state, or that it was the most productive," said Matt Ruark, an associate professor in the Soil Science department at UW-Madison.

But in 1983, it was selected as the official Wisconsin state soil for a special reason.

"It was the most uniquely 'Wisconsin,'" Ruark said.

+ Read More

Play Video

RHINELANDER - North Brown Street is now open and parking is also available. It has parallel parking spots and angled spots. Restaurants have already noticed an increase in business after the street opened late last week.

+ Read More
+ More General News
Search: 




Click Here