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Neenah acquiring brands from Wausau

Neenah Paper Inc. inked a deal to buy premium brands, including Astrobrights and Royal, from Wausau Paper Corp. (NYSE: WPP) for an undisclosed amount.
Alpharetta, Ga.-based Neenah (NYSE: NP) said the purchase would be financed through existing credit facilities and operating cash flows with closing expected Jan. 31, 2012.
“The purchase of these profitable brands is consistent with our stated intent to participate in the consolidation of the premium paper category when it can create significant value for our shareholders with minimal investment,” said Neenah CEO John O’Donnell, in a statement. “The timing of this opportunity enables us to improve returns through greater utilization of our existing asset base and growth in new channels such as retail.”
Neenah’s products include Classic, Environment, Crane, Sundance, Kimdura, Gessner, Jet-Pro SofStretch and Varitess.