By Cindy Macdonald
Weyerhaeuser will sell North Pacific Paper Company, the company’s printing papers business, to One Rock Capital Partners. The transaction includes the printing papers mill located in Longview, Wash. Weyerhaeuser has operated the business through a joint venture with Nippon Paper Industries Co., Ltd.
Weyerhaeuser expects to use a substantial portion of the after-tax proceeds from the transaction for the repayment of debt. Terms of the transaction were not disclosed.
This announcement completes the company’s strategic review of its Cellulose Fibers business. The company previously announced the sale of its pulp mills and liquid packaging board business. The pulp mills, including the mill in Grande Prairie, Alta., will be sold to International Paper for US$2.2 billion in cash. That transaction is expected to close in the fourth quarter of 2016.
“Through our strategic review of the Cellulose Fibers business we have enhanced the focus of our company and created significant value for Weyerhaeuser shareholders,” said Doyle R. Simons, president and chief executive officer. “We will continue to build on this strong foundation as we work together to be the world’s premier timber, land, and forest products company.”
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2016.