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.
MERRILL - When you think of movies you probably think of Hollywood, but one man from Northcentral Wisconsin is bringing his feature film to the local screen.
Wausau’s Jarrod Crooks not only makes movies, but he also stars in them.
His latest film, "Dispatched" is based off the Elvis Presley movie, “Girl Happy,” says filmmaker Jarrod Crooks. “My character Jake is sent to go watch my bosses daughter while she’s on vacation with a friend. Then an old enemy is kind of after him while he’s on vacation, so some things happen.”
Crooks made, "Dispatched" on a $5,000 budget and it’s full of romance, action, and comedy.
“My buddy would joke with me, ‘why don’t you just pick one genre man and then just go with it'," says Crooks. "I’m like because I want to make this movie how I want to make It'." "I actually like romantic comedies, I think they’re kind of fun, and I think they’re cute. I like action films because I’m a guy, and I like comedy because Jim Carey is great.”
Crooks is only 28 and has already made 4 feature films. His passion started when he was 12 years old.
“I went over to my friend’s house and he had a video camera. I was like oh we should make a movie, and at that time I was really into, “Wishbone,” says Crooks.
“We’d always remake our own literature pieces. Then I saw my first Jackie Chan movie and I’m like, alright it’s settled we’re doing action films from now on," says Crooks. “From then on it was just a love affair with the filmmaking.”
His latest film will be shown at the Cosmo Theatre in Merrill on Saturday at 5pm.
“The fact that I’m bringing it to central Wisconsin is great because this is where I grew up," says Crooks. "All my family and friends get to see it, so I’m very excited about that and you get to see yourself on the big screen what’s better than that.”
MADISON - A federal appeals court has upheld Republican Gov. Scott Walker's public union restrictions.
The restrictions stripped most public workers of nearly all their collective bargaining rights. Two unions representing city of Madison and Dane County public workers filed a lawsuit in 2011 alleging the law violated their right to freely assembly and equal protection.
U.S. District Judge William Conley found the restrictions constitutional in September. A three-judge appeals panel affirmed Conley's ruling Friday, saying the U.S. Constitution doesn't require the state to maintain policies that allow certain associations to thrive.
Wisconsin Attorney General J.B. Van Hollen calls the ruling ``a victory for the law and for Wisconsin taxpayers.''
An attorney for the unions tells the Milwaukee Journal Sentinel he needs to talk to his clients before deciding whether to appeal.
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