Wausau Paper has a tentative agreement to sell the Mosinee and Rhinelander paper mills. In a press release Thursday, Wausau Paper says they have a non-binding letter of intent to sell their specialty paper business to a new company being formed by KPS Capital Partners L.P. from New York. KPS Capital Partners is a private equity firm with paper industry experience. The initial cash price is listed as 130 million dollars.
The new company will not acquire Brainerd Minnesota, but does plan to acquire another unnamed company as part of this business plan.
The potential sale is not a done deal. Wausau Paper says there are details yet to work out including union negotiations. A representative of Wausau Paper who declined to be named says more details are expected to be announced in the coming days.