KPS Acquires Thilmany Papers from Kohlberg
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KPS Acquires Thilmany Papers from Kohlberg

Packaging Dynamics, a manufacturer of flexible packaging and specialty papers and a portfolio company of Kohlberg & Company, has agreed to sell its Thilmany Papers business unit to KPS Capital Partners.

Last month KPS Capital Partners also agreed to acquire the specialty paper business from Wausau Paper for $130 million. 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.

Thilmany Papers product line consists of a range of specialty bleached and unbleached lightweight papers and pressure sensitive release base papers used by customers for food and non-food packaging in such applications as: sandwich wraps; box closure taping system; insulation backing; microwave popcorn bags; and confectionary cups. The company’s pressure sensitive release base papers are also used by customers to provide a protective backing for self-adhesive materials including: business and consumer labels; airline baggage tags; food labels; industrial tapes and sealants; consumer ID labels; feminine hygiene; medical products; and laser & inkjet applications. Thilmany Papers has facilities in Kaukauna and Nicolet, WI (www.thilmany.com).

Closing of the Thilmany Papers transaction is conditioned upon the completion of the Wausau transaction and ratification of a new collective bargaining agreement between the new company and the United Steel Workers.

“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,” said Russ Wanke, Vice President and General Manager of Thilmany Papers.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. KPS portfolio companies have aggregate annual revenues of approximately $6.8 billion, operate 85 manufacturing plants in 25 countries, and employ over 29,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).

Kohlberg & Company is a control investor in a variety of industries including manufacturing, healthcare, consumer products and service industries. Since its inception in 1987, Kohlberg has completed more than 57 platform investments and more than 112 add-on acquisitions, with aggregate transaction values in excess of $8 billion. The firm is located in Mt. Kisco, NY (www.kohlberg.com).

Packaging Dynamics is a flexible packaging and specialty papers company. The company operates four business units – BagcraftPapercon, International Converter, De Luxe and Thilmany Papers. The company is based in Chicago (www.pkdy.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-25-13

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