Greif, Inc. Subsidiary Agrees to Sell Florida Timberland Assets
March 28 2005 - 9:30PM
PR Newswire (US)
Greif, Inc. Subsidiary Agrees to Sell Florida Timberland Assets
DELAWARE, Ohio, March 28 /PRNewswire-FirstCall/ -- Greif, Inc.
(NYSE:GEFNYSE:GEF.B) has entered into agreements to sell
approximately 56,000 acres of timberland and associated assets
located in Florida, together with certain parcels located in
surrounding states, to Plum Creek Timber Company, Inc. The assets
are owned by Soterra LLC, a Greif subsidiary. Plum Creek is one of
the nation's largest private timberland owners with approximately 8
million acres of timberlands in major timber producing regions of
the United States. According to the agreements, Plum Creek will pay
approximately $90 million, subject to closing adjustments, for the
timber, timberland and related assets. The agreement is subject to
conditions of due diligence including title and environmental
assessments. Greif expects the transactions to close in several
installments, with the first installment being completed in late
April or May, and involving the sale of timber, timberland and
associated assets for approximately $50 million. This transaction
will be paid primarily in the form of a 15-year installment note
that will be used as collateral in a securitization transaction,
with the proceeds used for general corporate purposes. The
remaining sale transactions are expected to take place during
Greif's 2006 fiscal year, and it is currently anticipated that the
tax-deferred proceeds of those transactions will be used to acquire
timber properties in proximity to existing Soterra holdings.
Currently, Soterra LLC owns and actively manages about 281,000
acres of timber properties in Alabama, Arkansas, Florida and
Louisiana, and owns about 35,000 acres in Canada. The sale to Plum
Creek includes all of Soterra's holdings in Florida. Greif, Inc. is
the world leader in industrial packaging products and services. The
Company provides extensive experience in steel, plastic, fibre,
corrugated and multiwall containers and protective packaging for a
wide range of industries. Greif also produces containerboard and
manages timber properties in North America. Greif is strategically
positioned in more than 40 countries to serve global as well as
regional customers. Additional information is on the Company's Web
site at http://www.greif.com/ . DATASOURCE: Greif, Inc. CONTACT:
Deb Strohmaier, APR, Director, Communications of Greif, Inc.,
+1-740-549-6074, or Web site: http://www.greif.com/
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