This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Packaging Dynamics Announces Definitive Agreement To Sell Thilmany Papers Business

CHICAGO, April 22, 2013 /PRNewswire/ -- Packaging Dynamics Corporation ("Packaging Dynamics"), a leader in flexible packaging and specialty papers, today announced the signing of a definitive agreement to sell its Thilmany Papers business unit to a new company to be formed and controlled by investment funds sponsored by KPS Capital Partners L.P. ("KPS").

Wausau Paper has previously announced that it had signed a non-binding Letter of Intent to sell its Specialty Paper business to this new company being formed by KPS.

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, as well as the output of Verso Paper's number five paper machine in Jay, Maine. 

Roger Prevot, CEO of Packaging Dynamics, commented, "This is truly an extraordinary opportunity to contribute our Thilmany Papers business to form a larger specialty papers company that will deliver lasting value to customers, employees and to the communities in which it operates, and for us to focus exclusively on our attractive downstream packaging and converting businesses."

Seth Hollander, a partner at Kohlberg & Company, commented, "We are pleased that our efforts to transform Thilmany's mill operations and to build a world-class organization have positioned the paper business to make this next step in its evolution."  Kohlberg & Company acquired Thilmany from International Paper and subsequently combined it with Packaging Dynamics.  Hollander added, "We look forward to operating Packaging Dynamics as a focused leader in its food packaging and specialty laminations end markets and continuing to grow those businesses organically and through additional acquisitions."

Russ Wanke, Vice President and General Manager of Thilmany Papers, commented, "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."

Closing of the Thilmany Papers transaction is conditioned upon the completion of the Wausau transaction, ratification of a new collective bargaining agreement between the new company and the United Steel Workers, required regulatory clearances, and certain other customary closing conditions.  While Packaging Dynamics expects to finalize the transaction in mid-2013, there can be no certainty or assurance about the timing, specific elements or completion of a transaction. 

About Packaging Dynamics

Packaging Dynamics is a leading flexible packaging and specialty papers company providing innovative solutions to customers in each of its four business units – BagcraftPapercon, International Converter, De Luxe and Thilmany Papers.  Packaging Dynamics is a portfolio company of private investment firm Kohlberg & Company.  For more information, visit our website at www.pkdy.com.

SOURCE Packaging Dynamics Corporation

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs