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.
NORTHWOODS - Home sales fell in the state of Wisconsin, but they're on the rise in the Northwoods.
Real Estate experts say home sales are up 5% in Oneida County. Home sales for the Northwoods are up 4%. Experts say right now it's a buyers market.
“If you're a seller right now you are probably going to be seeing some low ball offers,” says Ashlei Highfill, Century 21 Sales Associate. “We just encourage people to respond to any offer that they get not to just reject it or be offended but these days we are seeing a lot of buyers coming in and offering a lot less than what sellers are asking for.”
Experts say fewer homes are being foreclosed. This allows more families to make first time home purchases.
“It’s great to see that people are obviously getting back to work so they can afford to take that opportunity to put their family in their first home it's exciting for all of us,” says Highfill. “We're always happy to see somebody get that first house for their kids we're seeing some people that are making more money now so they're buying a move up house.”
Overall home sales in Wisconsin fell 11% compared to this time last year.
ACROSS THE NORTHWOODS - 4.7 might seem like just a random number, but it gives us an idea of just how cold it was this year. 4.7 degrees was the average temperature for this winter. It's the coldest winter in more than a century.
It’s common to see these sights and hear these sounds in a typical winter. But this year, we heard them a bit more. The Northwoods fought through it’s snowiest and coldest winter on record. What made it so rare was the persistent cold.
MERRILL - Hospitals can sometimes scare kids and even many adults.
That's why one Northwoods hospital wants those kids to be comfortable with doctors if they ever need their help.
Merrill kindergarteners visited Ministry Good Samaritan Health Center on Wednesday.
The kids got to see an ambulance, physical therapy and x rays.
"We try to show them that you know what, the hospital isn't so scary. And we bring them through different areas that they may experience when they come in or they have a family member here. And a lot of times children, if they don't know, they're very afraid. A hospital can be very intimidating, says Jane Bentz, Director of Foundation and Community Outreach.
NORTHWOODS - People in Wisconsin love their beer, but alcohol is a big problem in the Northwoods. Experts want people to remember that alcohol is a drug and should never be abused.
Alcohol is a depressant and slows down the central nervous system. Experts feel drinking here in the Northwoods has become too normalized.
“When you talk to people even from the Northwoods community alcohol goes hand in hand with family gatherings , graduation, prom, hunting, snowmobiling, recreational activities,” says Katie Kennedy, Options Counseling Service Clinician. “It's kind of created this normalized look at alcohol that it's okay to do that in these environments or in these situations when it actually really increases risks.”
It's not just adults that have alcohol problems. Kids under 21 are finding unique ways to abuse the drug. Some have even resorted to snorting alcohol as a means to get drunk faster.
“What happens anytime you ingest a substance as far as snorting like right into your nose it goes into your mucus membrane,” says Kennedy. “So instead of drinking alcohol whereas it's processed through your system it's a process, the alcohol goes immediately into your body into your blood stream it affects you a lot quicker.”
In 2012 Wisconsin was the number one state for binge drinking. That's according to the Center for Disease Control. April is alcohol awareness month.
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