KPS Capital Partners LP is buying the specialty paper businesses of Wausau Paper Corp. (NYSE: WPP) and Packaging Dynamics Corp. in two separate deals.

Both Mosinee, Wisc.-based Wausau and Packaging Dynamics, headquartered in De Pere, Wisc., manufacture specialty paper products for the food packaging and industrial markets.

KPS plans to combine the products to form Expera Specialty Solutions. The deal should close in the third quarter. Terms of both transactions remain undisclosed.

Paul Weiss Rifkind Wharton and Garrison LLP and Spilman Thomas & Battle PLLC serviced as KPS’ legal counsel. Goldman Sachs & Co. and GE Capital Markets Inc. are acting as lead arrangers for the deal’s financing, provided by a syndicate of banks and institutional investors.

New York private equity firm KPS manages funds with more than $6 billion in assets under management. The firm’s other investments include Motor Coach Industries, Waterford Crystal and Wedgwood. KPS focuses on corporate divestitures, turnarounds and other special situations.