SEATTLE, Dec. 1, 2016 /PRNewswire/ -- Weyerhaeuser
Company (NYSE: WY) today announced the completion of the sale of
its Cellulose Fibers pulp mills to International Paper for
$2.2 billion in cash. Weyerhaeuser
expects to use a substantial portion of the $1.6 billion after-tax proceeds for repayment of
debt.
The sale, which was announced in May
2016, includes five pulp mills located in Columbus, Miss.; Flint River, Ga.;
New Bern, N.C.; Port Wentworth, Ga. and Grand Prairie,
Alberta, with a combined total
annual operating capacity of about 1.9 million metric tons. The
sale also includes two modified fiber mills in Columbus, Miss. and Gdansk, Poland.
This transaction completes the divestiture of Weyerhaeuser's
Cellulose Fibers business, which resulted from the company's
strategic review initiated in November
2015. Earlier this year, the company completed the sale of
its liquid packaging board business to Nippon Paper Industries Co.,
Ltd. and the sale of its publishing papers business to One Rock
Capital Partners, LLC.
"The sale of our pulp mills delivers compelling value for our
shareholders and represents a significant milestone on our journey
to focus our portfolio and become the world's premier timber, land,
and forest products company," said Doyle R.
Simons, president and chief executive officer.
"International Paper is gaining world-class mills and a highly
regarded team of employees who will be well-positioned to reach
their full potential as part of a first-class packaging, pulp and
paper manufacturer."
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners
of timberlands, began operations in 1900. We own or control more
than 13 million acres of timberlands, primarily in the U.S., and
manage additional timberlands under long-term licenses in
Canada. We manage these
timberlands on a sustainable basis in compliance with
internationally recognized forestry standards. We are also one of
the largest manufacturers of wood products. Our company is a real
estate investment trust. In February
2016, we merged with Plum Creek Timber Company, Inc. In
2015, Weyerhaeuser (including its Cellulose Fibers business) and
Plum Creek, on a combined basis, generated approximately
$8.5 billion in net sales and
employed nearly 14,000 who serve customers worldwide. We are listed
on the Dow Jones World Sustainability Index. Our common stock
trades on the New York Stock Exchange under the symbol WY. Learn
more at www.weyerhaeuser.com.
FORWARD-LOOKING STATEMENTS
This communication contains statements concerning the company's
future plans that are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including,
without limitation, with respect to the company's use of proceeds
from the sale of assets. There is no guarantee that any of the
events anticipated by these forward-looking statements will occur.
If any of the events occur, there is no guarantee what effect they
will have on the company's operations, financial condition or
results of operations. The company will not update these
forward-looking statements after the date of this news release.
For more information contact:
Media – Anthony
Chavez, 206-539-4406
Financial Media – Andrew
Siegel, 212-355-4449
Analysts – Beth Baum, 206-539-4450
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SOURCE Weyerhaeuser Company