Weyerhaeuser to sell packaging businesses to International Paper
-- Converting Magazine, 3/18/2008
Federal Way, WA-based Weyerhaeuser Co. will sell its Containerboard, Packaging and Recycling businesses to International Paper for $6 billion in cash. 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 deal 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're pleased with the outcome, and we will continue to focus on those areas that present the greatest opportunities for the future,” Rogel says. “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."
The transaction is subject to regulatory review and receipt of financing by International Paper. The transaction is currently expected to close in the second half of 2008.
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