KAUKAUNA, Wis. (AP) - The owner of the Thilmany paper mills in Kaukauna and De Pere said it has signed an agreement to sell the plants to a private equity firm in New York.
KPS Capital Partners said it plans to combine the Thilmany mills with two Wausau Paper plants in Mosinee and Rhinelander to form what it said will be one of the leading specialty paper companies in North America.
Wausau Paper announced last month that it had signed a letter of intent to sell the mills to the new company being formed by KPS. The new company is expected to employ about 1,800 people.
"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," said Russ Wanke, Vice President and General Manager of Thilmany Papers.
The two Thilmany mills are owned by Packaging Dynamics and employ about 800 people.
"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," said Roger Prevot, CEO of Packaging Dynamics.
Terms of the Thilmany Papers transaction were not disclosed and were based on KPS's closing on the Wausau Paper plants. The deal also depends on ratification of a new collective bargaining agreement between the new company and the United Steel Workers and regulatory approval.