KPS Capital Partners has entered into definitive agreements with two paper manufacturers—Wausau Paper (NYSE: WPP) and Packaging Dynamics—to carve out their specialty paper divisions. The latter's is known as Thilmany Papers. KPS will acquire them through a newly formed company called Expera Specialty Solutions, which will serve a number of end markets. Both specialty paper divisions make paper products for the food packaging, industrial and pressure-sensitive release liner segments, and both are based in Wisconsin. Goldman Sachs and GE Capital Markets are providing financing for the transaction.