MOSINEE, Wis.--Oct. 1, 2004-- Wausau Paper announced today that it has reached an agreement to purchase the assets of Missota Paper Company, LLC, a specialty manufacturer of high-quality uncoated freesheet paper, for $9.6 million. The acquisition is expected to close within 45 days, and the assets will become part of the company's Printing & Writing business segment.
As part of the acquisition, Wausau Paper will acquire Missota's facility in Brainerd, Minn. The Brainerd mill contains two paper machines and finishing equipment capable of producing approximately 170,000 tons per year of uncoated freesheet paper. Wausau Paper plans to start the mill's largest paper machine shortly after completing the acquisition, producing up to 90,000 tons per year of premium printing and writing paper. No timetable has been established for the start-up of Brainerd's second paper machine.
"This acquisition complements our existing Printing & Writing business and provides us with the capability and scale to expand our sales of higher-margin premium papers in response to greater demand," said Thomas J. Howatt, president and chief executive officer. "Enhancing our product mix with innovative, premium products is one of our strategies for driving profitability and generating superior growth."
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