Wausau Paper to divest specialty paper business

KPS 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.

KPS is to 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. The new company will operate as Expera Specialty Solutions.

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.

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.

The transaction will result in net cash proceeds to Wausau Paper of approximately US$110 million after settlement of transaction-related liabilities, transaction costs and taxes.

Hank Newell, president and chief executive officer of Wausau Paper, said: ‘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.'