Wausau Paper Announces Definitive Agreement to Divest Specialty Paper Business
KPS, as previously announced, has also entered into a definitive agreement to acquire the specialty paper business of
A collective bargaining agreement covering employees at the
Key highlights of the transaction are as follows:
- The transaction will result in net cash proceeds to
Wausau Paperof approximately $110 millionafter settlement of transaction-related liabilities, transaction costs and taxes.
- Expera will acquire the assets of Wausau Paper’s
Rhinelanderand Mosineemills; the assets of the company’s Brainerd mill are not included in the transaction.
Wausau Paperwill retain defined benefit pension and other post-retirement benefit obligations; however, effective with the closing of the transaction, approximately $41 millionof future liability will be eliminated.
Wausau Paperwill not hold any equity ownership in Expera.
Wausau Paperwill 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.
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
Safe Harbor under the Private Securities Litigation Reform Act of 1995: The matters discussed in this news release concerning the company’s future performance or anticipated financial results are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements. Among other things, these risks and uncertainties include the strength of the economy and demand for paper products, increases in raw material and energy prices, manufacturing problems at company facilities, and other risks and assumptions described under “Information Concerning Forward-Looking Statements” in Item 7 and in Item 1A of the company’s Form 10-K for the year ended
Investor and Media Contact:
Perry Grueber, 715-692-2056
Director Investor Relations