Packaging Dynamics Announces Definitive Agreement to Sell Thilmany Papers
CHICAGO, April 22, 2013
CHICAGO, April 22, 2013 /PRNewswire/ -- Packaging Dynamics Corporation
("Packaging Dynamics"), a leader in flexible packaging and specialty papers,
today announced the signing of a definitive agreement to sell its Thilmany
Papers business unit to a new company to be formed and controlled by
investment funds sponsored by KPS Capital Partners L.P. ("KPS").
Wausau Paper has previously announced that it had signed a non-binding Letter
of Intent to sell its Specialty Paper business to this new company being
formed by KPS.
Following the closing of these transactions, the new company will include
Thilmany Papers' Nicolet and Kaukauna mills and Wausau Paper's Mosinee and
Rhinelander mills, all of which are located in Wisconsin, as well as the
output of Verso Paper's number five paper machine in Jay, Maine.
Roger Prevot, CEO of Packaging Dynamics, commented, "This is truly an
extraordinary opportunity to contribute our Thilmany Papers business to form a
larger specialty papers company that will deliver lasting value to customers,
employees and to the communities in which it operates, and for us to focus
exclusively on our attractive downstream packaging and converting businesses."
Seth Hollander, a partner at Kohlberg & Company, commented, "We are pleased
that our efforts to transform Thilmany's mill operations and to build a
world-class organization have positioned the paper business to make this next
step in its evolution." Kohlberg & Company acquired Thilmany from
International Paper and subsequently combined it with Packaging Dynamics.
Hollander added, "We look forward to operating Packaging Dynamics as a focused
leader in its food packaging and specialty laminations end markets and
continuing to grow those businesses organically and through additional
Russ Wanke, Vice President and General Manager of Thilmany Papers, commented,
"Our team here at Thilmany is proud to be playing a critical role in the
creation of a major new Wisconsin-based company. By combining Thilmany and
Wausau's Specialty Paper Business, we and KPS are establishing one of the
leading specialty paper companies in North America. We believe the
combination will result in a company with the product breadth and customer
reach to capitalize on the growing worldwide demand for specialty papers."
Closing of the Thilmany Papers transaction is conditioned upon the completion
of the Wausau transaction, ratification of a new collective bargaining
agreement between the new company and the United Steel Workers, required
regulatory clearances, and certain other customary closing conditions. While
Packaging Dynamics expects to finalize the transaction in mid-2013, there can
be no certainty or assurance about the timing, specific elements or completion
of a transaction.
About Packaging Dynamics
Packaging Dynamics is a leading flexible packaging and specialty papers
company providing innovative solutions to customers in each of its four
business units – BagcraftPapercon, International Converter, De Luxe and
Thilmany Papers. Packaging Dynamics is a portfolio company of private
investment firm Kohlberg & Company. For more information, visit our website
SOURCE Packaging Dynamics Corporation
Contact: Richard Cote, Packaging Dynamics Corporation, Vice President,
Finance, (773) 843-8009
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