NewCo to Acquire Wausau Paper Division

NewCo to acquire Wausau Paper division

A newly formed company tied to investment funding from KPS Capital Partners LP, a New York based private equity firm

Wausau Paper has signed a non-binding letter of intent to sell its specialty paper business to a NewCo, according to Recycling Today. Newco is a newly formed company tied to investment funding from KPS Capital Partners LP, a New York based private equity firm. KPS is said to have significant experience in the paper industry.
KPS also announces that it has signed a non-binding letter of intent to acquire an as yet undisclosed company that it will combine within NewCo with Wausau’s specialty paper business. Wausau has the option to have an initial ownership position in NewCo of up to 25 percent, with the opportunity to earn up to an additional 5 percent stake pending NewCo reaching certain performance thresholds.
As part of the transaction, NewCo will acquire the assets of Wausau Paper’s mills in Rhinelander and Mosinee, Wisconsin, for an initial cash purchase price of around $130 million.