Wausau Paper has announced it intends to sell its specialty paper business to a company to be formed by New York-based Equity firm Capital Partners, LP (KPS) for an initial cash price of about $130 million, according to a press release from Wausau Paper.
Wausau has the option to own up to 25 percent of the new company, with the opportunity to increase that ownership to 30 percent if the company reaches certain performance goals.
Assets of the Rhinelander and Mosinee mills, but not the Brainerd mill, are included in the transaction. A condition of the purchase is that the United Steelworkers ratify a new collective bargaining agreement with the new company.
KPS has significant experience in the paper industry, according to the release.