Wausau Paper has announced it has a buyer for its Rhinelander and Mosinee mills.
The company, which has had the two mills up for sale for several months, has signed a letter of intent to sell the business to a private equity firm. KPS Capital Partners LP out of New York is said to have significant experience in the paper industry according to a news release. They plan on combining with an additional specialty paper business.
The sale at $130 million includes assets at both the Rhinelander and Mosinee mills. The two mills employ around 900 workers. The deal with KPS requires United Steelworkers to ratify collective bargaining agreements with the new company.
The Union issued a statement on the acquisition saying, “We are anxious to engage in a discussion that will position the new company and its employees for long-term success and operational viability. We have had a long-term relationship with KPS, and have successfully worked with the company on numerous acquisitions that have resulted in the creation of thriving businesses.”
The deal does not include the plant in Brainerd, Minnesota which is scheduled to shut down later this year. Last year Wausau Papers closed the doors on its mill in Brokaw.