Weyerhaeuser Sells Containerboard, Packaging and Recycling To International Paper for US$6 Billion in Cash
March 17, 2008 By Pulp & Paper Canada
FEDERAL WAY, WA, U.S. March 17, 2008 Weyerhaeuser Company (NYSE: WY) today announced the sale of its Containerboard Packaging and Recycling business to International Paper (NYSE: IP) for US$6 billion in cash, subject to post closing adjustments. Weyerhaeuser said it expects to use a substantial portion of the after-tax proceeds from the sale to pay down debt.
The transaction includes nine containerboard mills, 72 packaging locations, 10 specialty-packaging plants, four kraft bag and sack locations and 19 recycling facilities. (See list at end of release for locations.) The transaction affects approximately 14,300 employees.
Steven R. Rogel, chairman and chief executive officer, said the announcement completes the companys strategic review of the CBPR business.
We are pleased with the outcome and we will continue to focus on those areas that present the greatest opportunities for the future, Rogel said. This future begins with the trees and the land, and our outstanding stewardship of these resources.
The transaction is subject to customary closing conditions including regulatory review and receipt of financing by International Paper. The transaction is currently expected to close in the second half of 2008. International Paper has committed financing for the entire purchase price. Weyerhaeuser CBPR and International Paper will continue to operate separately until the transaction closes.
Weyerhaeuser Company, one of the world’s largest forest products companies, was incorporated in 1900. In 2007, sales were $16.3 billion. It has offices or operations in 13 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser’s businesses, products and practices is available at http://www.weyerhaeuser.com.
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