Weyerhaeuser Company has announced the sale of its Containerboard Packaging and Recycling business to International Paper for $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. The transaction affects approximately 14,300 employees. Steven R. Rogel, chairman and chief executive officer, said the announcement completes the company's 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. To this we add our unique expertise in growing and extracting value from the trees and the land on which they grow.
"I want to thank the CBPR employees for their dedication, patience and professional approach during this review. Their efforts continue to improve the performance of this business and I'm confident that this transaction positions CBPR for an even more successful future."
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. Morgan Stanley acted as financial advisor to Weyerhaeuser in the transaction.
For more information: www.weyerhaeuser.com.