Old Town mill buyer vows to restore jobs
The shuttered Old Town paper mill is set to be bought by Expera Specialty Solutions, a Wisconsin-based maker of specialty paper products, the company announced Tuesday.
The Bangor Daily News reported that Expera, which operates four paper mills in Wisconsin, has entered an agreement to purchase the Old Town Fuel & Fiber mill, and that a meeting is set with town officials to discuss the agreement.
Further details of the agreement were not disclosed, but Old Town City Manager Bill Mayo said he was told a deal is close.
Expera said it plans to make a significant capital investment in the Old Town mill. A company spokeswoman told the BDN that Expera plans to restart the mill and restore the 180 jobs that were lost when the mill was unexpectedly shuttered in mid-August.
“A combination of Expera and Old Town will significantly strengthen both businesses,” Expera CEO Russ Wanke said in a prepared statement. “In particular, the combination will increase Expera’s vertical integration into pulp and reduce Old Town’s go-forward commercial risk by becoming part of Expera, a financially strong enterprise that serves stable and growing end markets and possesses a dedicated base of long-term customers rather than as a stand-alone enterprise.”
Expera was formed last year by KPS Capital Partners, a New York-based investment firm that “targets ‘orphan’ businesses of larger corporations that would benefit from new ownership,” according to the investment firm’s website. KPS created Expera when it purchased Thilmany Papers and Wausau Specialty Paper, which makes microwave popcorn bags, wine labels and other specialty paper products, according to the company’s website.
When the Old Town mill shut down in August, a company official said it was a result of increasing foreign competition and high wood and energy costs. The mill was acquired by Patriarch Partners LLC, a New York-based private equity firm, in 2008.
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