Packaging Dynamics, a portfolio company of investment firm Kohlberg & Company, has signed a definitive agreement to sell its Thilmany Papers business unit to a new company.
The new company will be formed and controlled by investment funds sponsored by the US-based KPS Capital Partners.
Earlier, Wausau Paper had signed a non-binding Letter of Intent to sell its Specialty Paper business to the new company.
The company will include Nicolet and Kaukauna mills of Thilmany Papers and Mosinee and Rhinelander mills of Wausau Paper located in Wisconsin, as well as the output of Verso Paper's paper machine in Jay, Maine, upon closing of the deals.
Kohlberg & Company partner Seth Hollander said, "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."
Thilmany was acquired by Kohlberg from International Paper and subsequently combined with Packaging Dynamics.
Flexible packaging and specialty papers company Packaging Dynamics hopes to finalize the transaction in mid-2013.
