Wausau Paper (WPP) to Sell Print & Color Brands; Expects $49M in Proceeds
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Price: $26.64 -0.22%
Financial Fact:
Weighted average shares outstanding - diluted (in shares): 50.38M
Today's EPS Names:
EDXC, BICX, FBPI, More
Financial Fact:
Weighted average shares outstanding - diluted (in shares): 50.38M
Today's EPS Names:
EDXC, BICX, FBPI, More
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Wausau Paper (NYSE: WPP) announced today that its Board of Directors has approved the sale of its premium Print & Color brands – including Astrobrights, Astroparche and the Royal family of products – and closure of its Brokaw, Wisconsin, paper mill. The sale, to Neenah Paper, Inc. (NYSE: NP), is scheduled to close on January 31, 2012. The Brokaw mill will be permanently closed by March 31, 2012, marking the end of the Company’s material participation in the Print and Color markets. The Brokaw shutdown will affect approximately 450 hourly and salaried jobs.
The Company will continue to support the product needs of its customers during transfer of the business to Neenah Paper.
Anticipated after-tax closure-related costs and impairment charges, net of proceeds from the premium brand sale, are expected to total approximately $49 million, or $1.00 per diluted share, including after-tax non-cash charges of $45 million, or $.92 per diluted share. In the fourth quarter of 2011, after-tax charges are expected to be approximately $49 million, or $0.99 per diluted share, with non-cash charges totaling approximately $48 million, or $.96 per diluted share, including approximately $38 million, or $0.78 per diluted share, related to the impairment charge on mill assets. Remaining closure-related charges, net of the proceeds from the premium brand sale, will be recognized during 2012. Sales proceeds and liquidation of working capital, net of closure costs, are expected to generate estimated cash flows of approximately $20 million in 2012. Closure of the Brokaw mill is expected to be accretive to both operating earnings and EBITDA on an annual basis.
The Company will continue to support the product needs of its customers during transfer of the business to Neenah Paper.
Anticipated after-tax closure-related costs and impairment charges, net of proceeds from the premium brand sale, are expected to total approximately $49 million, or $1.00 per diluted share, including after-tax non-cash charges of $45 million, or $.92 per diluted share. In the fourth quarter of 2011, after-tax charges are expected to be approximately $49 million, or $0.99 per diluted share, with non-cash charges totaling approximately $48 million, or $.96 per diluted share, including approximately $38 million, or $0.78 per diluted share, related to the impairment charge on mill assets. Remaining closure-related charges, net of the proceeds from the premium brand sale, will be recognized during 2012. Sales proceeds and liquidation of working capital, net of closure costs, are expected to generate estimated cash flows of approximately $20 million in 2012. Closure of the Brokaw mill is expected to be accretive to both operating earnings and EBITDA on an annual basis.
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