Mosinee and Wausau Agree to Merge

Wausau Paper Mills Co. and Mosinee Paper Corp. said they will merge in a stock swap valued at about $442 million. The merged company, to be named Wausau-Mosinee Paper Corp., will have a market capitalization of about $1.2 billion. News of the deal, which is expected to close by year-end, comes shortly after the merger of paper makers Fort Howard Corp. and James River Corp. into Fort James Corp. Wausau and Mosinee, both based in Wisconsin, make specialty products, including technical papers for the medical, food-processing, automotive, housing and labeling industries; premium printing and writing papers; and toweling and tissue. The combined entity would operate seven paper mills and four converting plants in six states. The companies said they have identified about $20 million in expected annual savings. Mosinee shares surged $5.38 to close at $30.50 on Nasdaq; Wausau’s shares edged up $1.63 to close at $22.38, also on Nasdaq.