KAUKAUNA, Wis. -

A private equity firm from New York is adding the Thilmany paper mills in Kaukauna and De Pere to its portfolio, positioning it as one of the leading specialty paper companies in North America.

When the transactions close, a new company formed by KPS Capital Partners will own the Thilmany mills and Wausau Paper's Mosinee and Rhinelander mills. KPS announced it was going to buy the Wausau Paper mills last month. The Thilmany mills are owned by Packaging Dynamics and employ about 800 people at the two Wisconsin mills. WLUK-TV reported with the Wausau Paper mills, the new KPS company will employ about 1,800 people.

The Wausau transaction is a condition of the Thilmany Papers deal. It needs ratification of a new collective bargaining agreement between the new company and the United Steel Workers.