Loading

21°F

22°F

20°F

24°F

19°F

25°F

20°F

27°F

19°F

22°F

27°F

20°F
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
What We're Working OnSubmitted: 03/26/2015

- A 22-year-old Weston man faces a child abuse charge for allegedly putting a child's face in extremely hot water. How long he could go to prison, if convicted, tonight on Newswatch 12.

- Plus, Chequamegon high school has only been around for 6 years. But they have already built an athletic tradition.

We'll have the details on these stories and more tonight on Newswatch 12 - news from where you live.

+ Read More

MADISON - The DNR helped move 26 elk to Jackson County on Thursday. The herd from Kentucky was introduced near Black River Falls.

+ Read More

ANTIGO - An Antigo man could spend more than 40 years in prison for allegedly biting a piece of another man's ear off during a bar fight.

According to court documents, 26-year-old James Pendleton was sitting across the bar from the victim and a woman who had a restraining order against Pendleton.

+ Read More

NORTHWOODS - On Tuesday, a Michigan man named Steven Snyder robbed a Wausaukee bank. Before he was killed later that day, police say Snyder killed a state trooper and another person.

Bank workers in Wausaukee, like those in other Northwoods banks, likely had been trained in advance on what to do if being robbed.

In Rhinelander, the police department works directly with banks and credit unions to prepare workers for a potential robbery.

+ Read More

RHINELANDER - The Rhinelander Area Food Pantry uses creative ways to get food donations. One of their fundraisers, CANtastic, just finished up for the year.

Nine teams used more than 4,300 cans to build replicas of historic buildings. Then, more than 700 people used cans to vote for their favorite structure.

+ Read More

MADISON - The number of walleye fishermen can keep could change. The DNR wants to change how it sets the walleye bag limit in ceded territory.

It wants a three walleye bag limit for all lakes and rivers in the territory.

The tribes have treaty rights allowing them to harvest fish from lakes in most of northern Wisconsin.

The Natural Resources Board will consider the proposal on April 8th.

+ Read More

RHINELANDER - Doctors diagnosed a Rhinelander man with lung cancer that spread to his brain last December.

Since then, the community has helped fundraise for medical bills.

Twenty-six-year-old Jonathan Ottman hasn't been able to work since he was diagnosed.

There have already been fundraisers done by Boy Scout Troop 672 and Sammy Jr's.

Friday there will be a zumba party at the Northwoods Banquet Center.

+ Read More
+ More General News
Search: 




Click Here