Mason Wells, a Milwaukee-based private equity firm, will acquire the performance packing division of Appleton Papers Inc. for about $58 million. With the purchase of Appleton’s assets, which is expected to close later this month, Mason Wells will create NEX Performance Films Inc.
“We’re creating a stand-alone entity with the assets from Appleton,” said Greg Myers, managing director with Mason Wells. “NEX is a new entity that we created to buy the performance packaging division (of Appleton) with its existing management and existing business.”
Appleton’s performance packaging division is comprised of two divisions – American Plastics Co. Inc. in Rhinelander and New England Extrusion Inc., which has facilities in Milton and Turners Falls, Mass. The company has 150 to 160 workers, Myers said, all of which are being retained in the purchase.
NEX Performance Films will fit in well with several of Mason Wells’ other holdings in the consumer packaging industry, Myers said.
“They have good technology and are in attractive markets like food and health care,” he said. “They have a long-standing reputation and we think they are well positioned to continue to grow.”
Myers said Mason Wells will expand NEX Performance Films’ capacity in the coming months, and, over time, the private equity firm may also make add-on acquisitions to bolster the new company.
Appleton is selling is plastics packaging division to focus on its specialty paper and Encapsys microencapsulation businesses, said Mark Richards, Appleton’s CEO.
“Our core strengths in specialty paper production and microencapsulation have been the foundation of our company’s success for more than a century, and they will be the focus of our growth strategy in the future,” he said.

Bankers recently surveyed by the Wisconsin Bankers Association say the recently enacted Dodd-Frank Bill will likely result in incur higher compliance costs and lower revenue levels for many banks and could force them to charge for services that are currently provided for free.

According to the responses of 114 banking professionals, the new federal financial regulations could limit lending and slow economic recovery. Many bankers also believe that smaller community banks will be more adversely affected than larger regional or national banks.

The Senate may act on the Dodd-Frank Bill soon. The House approved the bill on June 30.

About 77 percent of the bankers surveyed rated the economy as fair, while 19 percent said it is poor – and 78 percent of the bankers believe it will stay the same for the next six months. However, about 56 percent of the bankers surveyed believe that the economy has hit bottom and is beginning to improve.

“Bankers say commercial lending demand remains low because businesses are uncertain about the strength of the economic recovery,” said Kurt R. Bauer, WBA president and CEO.

In the cover story of the latest issue of BizTimes Milwaukee, several Milwaukee-area economists say the U.S. economy is not likely to enter a double dip recession, despite high unemployment, a dismal housing market, the financial turmoil in several European countries and the continuing oil spill in the Gulf of Mexico.

“The traditional indicators that historically preceded a downturn in economic activity, an inverted yield curve, a high real fed funds rate and upward movement in inflation and a decline in leading indicators – all of those indicators are absent today,” said Keith Hembre, chief economist for Minneapolis-based U.S. Bancorp. “That would be the basis for saying that a double dip within the next six, nine or twelve months is just an unlikely occurrence.”

However, the U.S. economic picture is far from rosy. Instead of the robust recovery that seemed likely late last year and early this year, most economist tell BizTimes that the U.S. is in for a long climb out of the Great Depression.

“In terms of the growth rate, I am suggesting that the growth rate will be about 3 percent for 2010 and maybe slightly higher for next year,” said Abdur Chowdhury, an economics professor from Milwaukee’s Marquette University. “Maybe there will be some improvement next year, but not much more. Four (percent) would be my upper limit (for economic growth in 2011).”

Read more in the latest issue of BizTimes Milwaukee.

Weyers to succeed Hansen as Johnson Financial CEO

Richard Hansen, chief executive officer of Racine-based Johnson Financial Group, will retire at the end of the year, and the company announced today that he will be succeeded by Russ Weyers, currently the president and chief operating officer of the firm.

“Dick joined our company 15 years ago when we were a small local enterprise,” said Helen Johnson-Leipold, chairman of Johnson Financial, the parent company of Johnson Bank. “He has significantly strengthened our banking and insurance businesses and has expanded the footprint and portfolio of our company. He’s built a very strong team of associates, giving us remarkable growth and success.”

Hansen and Weyers have worked together over the past 15 years, which should make Weyers’ transition into the CEO role smooth for the company and its employees, Johnson-Leipold said.

“Succession planning is very important for all of our family enterprises,” she said. “One of our keys to success is our people-focused values. And to find that in a leader in combination with the long-term thinking and acumen that Russ has is a great combination, something that is unique to the leaders of our companies.”

“We’ve kind of grown up here together,” Hansen said. “He’s participated in developing our vision proposition and has demonstrated to all of us his ability to deal with the dramatic change we’re going through while staying focused on the community.”

Although the company is facing changing financial regulations and challenging economic conditions, Weyers believes Johnson Financial will achieve significant future growth.

“We’re a financial company that follows the rules and treats our customers with respect,” he said. “It’s our job to figure out (new regulations) and follow them correctly. The (financial reform) bill will create new and unique challenges for us. We’re in an economic situation that no one knows (what will happen). But with the plan we have today and the people we have today, we will be successful.”

Associated Banc-Corp launches institutional investment management firm

Green Bay-based Associated Banc-Corp. has launched a new affiliate, Kellogg Asset Management LLC, a federally registered investment advisory firm that focuses on the needs of institutional investors.

Kellogg Asset Management’s target clients include corporations, endowments and foundations, financial intermediaries, insurance companies, municipalities, defined benefit pension funds and defined contribution retirement plans.

"Associated has a long history of working with institutional clients," said John Thayer, chief investment officer of Associated. "We believe there is a tremendous opportunity to build on our existing institutional business based on our record of producing competitive investment returns and rigorous risk management. In addition, the experience and expertise of our colleagues strengthens our team approach to serving our clients."

Kellogg Asset Management began managing institutional client accounts earlier this year after the transfer of investment management responsibilities for institutional clients from Associated Trust Company, N.A., an affiliated banking institution with trust powers.

The firm was named for Rufus B. Kellogg, who organized the Kellogg National Bank of Green Bay in 1874. Kellogg National Bank was the precursor of Associated Bank.

The firm has 12 employees, three of whom were hired in the last 12 months. All of its employees are in Green Bay.

Associated Trust Co. continues to manage trust accounts for high net worth individuals and fiduciary accounts. Kellogg was formed to handle institutional accounts.

Stock market volatility, particularly on the downside, has reinforced the notion that investors should adopt a philosophy to limit the risk of permanent capital loss – that is, paying too high a price and being forced to sell for a loss.

Pyramax Bank will present its “Four-Ball Golf Challenge - Benefiting the Cystic Fibrosis Foundation” on Monday, July 19 from 7 a.m. to 7 p.m. at Hidden Glen at Bentdale Farms, 3300 Hidden Glen Lane, Cedarburg. The event includes 27 holes of golf, breakfast, lunch, cocktails, raffles and more. Call (262) 798-2060, or email lbudzinski@cff.org.

Banking

• Wisconsin Department of Financial Institutions 
• Federal Deposit Insurance Corp.
• Wisconsin Bankers Association 
• Community Bankers of Wisconsin
• Wisconsin Mortgage Bankers Association
• American Bankers Association
• Bankers Association for Finance and Trade
• Commercial Finance Association 
• Risk Management Association

Mergers & Acquisitions

• Association for Corporate Growth 
• International Business Brokers Association 
• Mergers.com

Wealth Management/Financial/Retirement Planning

• Financial Planning Association
• Financial Planning Association of Southern Wisconsin
• Investment Management Consultants Association
• National Association of Personal Financial Advisors (NAPFA)

Other 

• Society of Financial Service Providers
• Small Business Administration
• State public awareness campaign
• Wisconsin Credit Union League
• CFA Institute
• CFA Society of Milwaukee
• Wisconsin Angel Network