KPS Capital Partners has formed a new company, Expera Specialty Solutions, to complete the previously announced acquisitions of Wausau Specialty Paper from Wausau Paper, and the specialty paper business (“Thilmany Papers”) of Packaging Dynamics Corporation, a portfolio company of Kohlberg & Company. Closing of these acquisitions are expected to occur simultaneously during the second or third quarter of 2013.
“We are very excited to create Expera. Through the acquisitions of Wausau Specialty Paper and Thilmany, Expera immediately becomes North America’s leading manufacturer of specialty paper solutions with an industry leading portfolio of brands,” said Raquel Palmer, a KPS Partner. “The new company, with its reputation for exceptional quality, customer focus, technical expertise and product innovation, coupled with KPS’s capital resources, will be perfectly positioned to capitalize on the growth in niche, non-commodity markets, where engineered and applied technological solutions are critical to success.”
Wausau Specialty Paper is a manufacturer of specialty paper products for use in the tape, pressure-sensitive release liner, coated products, industrial and food packaging segments. Wausau Specialty Paper has approximately 900 employees across two mills located in Rhinelander, WI and Mosinee, WI (WausauSpecialtyPaper).
Thilmany Papers manufactures 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 approximately 900 employees at manufacturing facilities located in Kaukauna and De Pere, WI (www.thilmany.com).
“The creation of Expera was the result of two distinct and complex acquisitions that were negotiated and signed in parallel,” said Ms. Palmer. “We look forward to growing Expera aggressively, both organically and through acquisition on a global scale. We thank the United Steelworkers Union for its critical support of our vision for the specialty paper industry in North America, the creation of Expera and its first two acquisitions.”
Financing will be provided by a syndicate of banks and institutional investors with Goldman Sachs and GE Capital Markets acting as Lead Arrangers.
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. The firm’s 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).
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-21-13
