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FOR IMMEDIATE
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KPS
CAPITAL PARTNERS, LP ANNOUNCES FORMATION OF EXPERA SPECIALTY SOLUTIONS
CREATES
THE LEADING SPECIALTY PAPER COMPANY IN NORTH AMERICA
AGREES
TO ACQUIRE THE SPECIALTY PAPER BUSINESS OF WAUSAU PAPER CORP. AND THE
THILMANY DIVISION OF PACKAGING DYNAMICS CORPORATION
New York, NY (May 20, 2013)
-- KPS Capital Partners, LP (“KPS”) announced today that, through a newly
formed company, Expera Specialty Solutions, LLC and its affiliates
(“Expera”), it has entered into definitive agreements with Wausau Paper
Corp. (NYSE: WPP) (“Wausau”) to acquire Wausau’s specialty paper business
(“Wausau Specialty Paper”) and with Packaging Dynamics Corporation
(“PKDY”) to acquire PKDY’s specialty paper business (“Thilmany”).
Wausau Specialty Paper and
Thilmany are both leading, integrated North American manufacturers of
specialty paper products for the food packaging, industrial and
pressure-sensitive release liner segments. Wausau Specialty Paper employs
approximately 900 employees at manufacturing facilities located in
Rhinelander and Mosinee, Wisconsin.
Thilmany employs approximately 900 employees at manufacturing
facilities located in Kaukauna and De Pere, Wisconsin.
Wausau
Specialty Paper and Thilmany have been leading suppliers of specialty
paper-based products to a diverse set of end-use markets and geographies
for more than 100 years. Wausau
Specialty Paper’s and Thilmany’s products offer highly customized
solutions that are engineered to serve each customer’s unique technical
requirements. The combined
business’s broad range of flexible machines and extensive technical
capabilities creates the ideal manufacturing platform to serve the
specialty paper sector.
Raquel Palmer, a KPS Partner, said, “We are very
excited to create Expera. Through
the acquisitions of Wausau Specialty Paper and Thilmany, Expera
immediately becomes North America’s
leading manufacturer of specialty paper solutions with an industry
leading portfolio of brands. The
new company, with its reputation for exceptional quality, customer focus,
technical expertise and product innovation, coupled with KPS’s capital
resources, will be perfectly positioned to capitalize on the growth in
niche, non-commodity markets, where engineered and applied technological
solutions are critical to success.
We believe the combination of these businesses will unlock very
meaningful synergies benefitting many constituencies, including Expera’s
customers, employees and the communities that depend on the continuing
operation of its manufacturing facilities.
“The creation of Expera was the result of two distinct
and complex acquisitions that were negotiated and signed in parallel,”
Ms. Palmer continued, “We look forward to growing Expera aggressively,
both organically and through acquisition on a global scale. We thank the United Steelworkers Union
for its critical support of our vision for the specialty paper industry
in North America, the creation of Expera
and its first two acquisitions.”
Russ Wanke, the current Vice President and General
Manager of Thilmany and future Chief Executive Officer of Expera, said,
“This is the beginning of an exciting new era for Expera as a new
independent company and a strong, stable platform positioned for
expansion and growth in the future.
I am very excited for our customers, employees and communities, as
we intend to invest significant capital and resources into research and
development to expand our new company’s combined competitive advantages,
capitalize on the growth in the specialty paper industry worldwide, and
provide innovative products with a superior level of service.” Wanke continued, “I
look forward to leading such a talented and committed organization into the future. Our entire team is very excited about KPS’ commitment
to manufacturing excellence and to supporting our growth.”
Completion of the transactions is
expected to occur simultaneously during the second or third quarter of
2013, subject to customary closing conditions.
Paul, Weiss, Rifkind, Wharton
and Garrison LLP and Spilman Thomas & Battle PLLC served as legal counsel
to KPS and Expera.
Financing for the transaction
will be provided by a syndicate of banks and institutional investors with
Goldman Sachs & Co. and GE Capital Markets, Inc. acting as Lead
Arrangers.
About Wausau Specialty Paper
Wausau Specialty Paper is a
leading North American manufacturer of specialty paper products for use
in the tape, pressure-sensitive release liner, coated products,
industrial and food packaging segments.
Wausau Specialty Paper employs approximately 900 employees across
two mills located in Rhinelander, WI and Mosinee, WI. For more information, please visit
http://www.wausaupaper.com/TechnicalSpecialty.aspx.
About Thilmany, LLC
Thilmany is a
leading North American manufacturer of specialty paper products for use
in the pressure-sensitive release liner, industrial and food packaging
segments. Thilmany employs
approximately 900 employees at two facilities located in Kaukauna, WI and
De Pere, WI. For more information,
please visit www.thilmany.com.
About KPS
Capital Partners, LP
KPS is the
manager of the KPS Special Situations Funds, a family of investment funds
with over $6.0 billion of assets under management. KPS seeks to realize
significant capital appreciation by making controlling equity investments
in companies across a diverse range of manufacturing industries. The KPS investment strategy is based
primarily upon partnering with top management teams and improving the
operations of businesses.
Thereafter, upon achieving stability and profitability, KPS
focuses on growing its businesses, both organically and through strategic
acquisitions. KPS portfolio
companies have aggregate annual revenues of approximately $6.8 billion,
operate 85 manufacturing facilities in 25 countries, and employ over
29,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and
portfolio companies are described in detail at www.kpsfund.com.
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