paper

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

Wingate Partners has acquired Nekoosa Coated Products, a manufacturer of specialty paper products, from Dunsirn Partners and PS Capital Partners.

Nekoosa Coated Products is a manufacturer of specialty paper products including carbonless cutsheet and digital carbonless paper for businesses and institutions such as printers, banks and hospitals. The business was part of 3M until it was spun out in 1996 as one of seven operating divisions of Imation, a new company formed by 3M. In 2005, the Imation Specialty Paper division was acquired by Dunsirn Partners and renamed Nekoosa Coated Products. In 2006, the company acquired the carbonless paper business of Nashua Corporation to further expand Nekoosa’s presence in the carbonless market. Nekoosa Coated Products is headquartered in Nekoosa, WI (www.nekoosacoated.com).

Wingate Partners makes control equity investments in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million. Since founding in 1987, Wingate has managed four funds with total capital of approximately $500 million. The firm is based in Dallas (www.wingatepartners.com).

Wingate partnered with Nekoosa president Paul Charapata, along with John Danio, vice president of sales and marketing, and Tim Reimer, controller, to acquire the business. “Nekoosa Coated Products is an ideal situation for Wingate – a strong, innovative management team that leads a very well positioned business in vital markets,” said Brad Brenneman, Principal at Wingate Partners. “We are honored to partner with Paul, John and the Nekoosa team and look forward to supporting their vision to further grow Nekoosa with the end goal of bringing increased value to our customers.”

“This investment by Wingate Partners enables us to accelerate our growth as we strive to provide even more value added products and services for our customers through a shared vision of strategic partnerships, including acquisitions,” said Mr. Charapata. “This is an exciting time for all Nekoosa employees and customers as we build upon the foundation of success we created together with a fantastic new partner.”

Greene Holcomb & Fisher (www.ghf.net), an investment banking firm that specializes in mergers and acquisitions, private placements and financial advisory services for the middle market, represented Nekoosa Coated Products in this transaction. “The transaction provides an opportunity for Nekoosa’s exceptional management team and dedicated employees to work closely with Wingate, a private equity firm with a well-earned reputation for supporting strategic growth,” said Eric Nicholson, Managing Director of Greene Holcomb & Fisher.

Dunsirn Partners makes control investments in small to mid-size manufacturing, distribution and packaging companies that have revenues from $20 million to $100 million. The firm is base in Greenville, WI (www.dunsirnpartners.com).

PS Capital Partners is a private equity firm founded by Paul Sweeney and Paul Stewart. With access to equity capital provided by high net worth individuals and family trusts, PS Capital Partners invests in manufacturing and process businesses located in the Upper Midwest with revenues ranging from $10 million to $50 million. The firm is based in Milwaukee, WI (www.pscapitalpartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-11-12