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

MINOCQUA - All over the country hundreds of thousands of people came out for the Women's March Saturday. Northern Wisconsin was no exception. The day highlights women's rights but some men felt it was important to March by their side.
At the Women's March on Minocqua nearly 200 women from different backgrounds marched as one.
However, sprinkled between the pink you'll find men moved by this movement like Cliff Claus.
"Very irritated," said Claus.
As a father Cliff has specific reasons for walking the mile with the women on Saturday.
"Our government's gone to heck," said Claus.
"I wanna be a good role model for my daughters.-That's sometimes a hard thing for a guy to do," said women's rights supporter Brent Mc Farlend.


+ Read More

Play Video

RHINELANDER - Plenty of people set out to stock up on winter gear in preparation of the upcoming snowfall on Monday. Owner of Mel's Trading Post Mitch Mode says customers have been coming in to buy mittens, gloves, and hats to make sure they're prepared.

"Because when it's 40 degrees on Friday and Saturday you get kind of blasé about things and then you see a forecast which says six or eight or ten inches of snow on Monday, you get kind of serious again," said Mode.

+ Read More

Play Video

BLACKWELL - A violent sex offender will potentially be placed in the town of Blackwell in Forest County. Jeffrey LeVasseur was found guilty of first degree sexual assault of a child in 1995.

Residents are unhappy with the idea, but now the Chequamegon-Nicolet National Forest is also speaking out against the placement.

+ Read More

MADISON (AP) - In a tack to the left in an election year, Wisconsin Republican Gov. Scott Walker says he wants a state law to guarantee people with pre-existing conditions don't lose health insurance.


He also wants Wisconsin to join Minnesota, Oregon, Hawaii and Alaska in obtaining a federal waiver to offer reinsurance. That is a move designed to lower premiums for people in the private insurance marketplace.

+ Read More

Play Video

CASSIAN - Multiple fire departments gathered on Saturday for some ice rescue training in Oneida County. But that training session also included some special guests.

The Cassian, Little Rice, Nokomis, and Tomahawk Fire departments joined up for the training. But, for the first time, the fire departments also invited snowmobile clubs to come and observe.

+ Read More

Play Video

ABBOTSFORD - Two people died and another person went to the hospital after a shooting in Abbotsford early Saturday morning. Police investigating the incident held a press conference on Saturday.

Officers say the lone male suspect, who is currently being held in Marathon County Jail, did know the victims. Officers would not share how exactly the suspect and victims knew one another.

+ Read More

ASHLAND COUNTY - A prosecutor has cleared a sheriff's deputy in a 14-year-old boy's death.

+ Read More
+ More General News
Search: 





Click Here