| Campti mill in $6 billion
sale by Weyerhaeuser Weyerhaeuser's Red River containerboard mill at Campti, Louisiana is one of over 100 facilities being acquired by Memphis-based International Paper in Weyerhaeuser's sale of its Containerboard Packaging and Recycling business announced on March 17. The total package is for $6 billion in cash. The Red River mill is one of the facilities acquired by Weyerhaeuser in its purchase of Willamette Industries in 2003. Other locations in the sale to IP include packaging plants at Ft. Smith and Russellville, Arkansas; Jackson, Magnolia, and Olive Branch, Mississippi; and recycling plants at Dallas and Carrolton, Texas. 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 this story for locations.) The transaction affects approximately 14,300 employees. Weyerheuser operates a lumber sawmill and plywood veneer mill at Dodson, and other wood products facilities at Taylor, Simsboro, and Arcadia, Natchitoches, Zwolle, Bogalusa, and Holden, Louisiana and forest management offices at Dodson and Natchitoches in North Louisiana. In Arkansas, production is located at Emerson, Russellville, DeQueen, and corporate offices at Hot Springs. Weyerheuser has over 1,700 employees in Louisiana, and 1.036 million acres of timberland.\par }{\plain 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 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. Locations involved in sale of the containerboard and
packaging division are: Because the transaction is a purchase of assets rather than of stock, International Paper will realize a tax benefit that has an estimated net present value of approximately $1.4 billion. Taking this benefit into account, the net purchase price is about $4.6 billion. "This deal represents a compelling opportunity for International Paper and our shareowners at a very attractive valuation," said Chairman and Chief Executive Officer John Faraci. "Integrating Weyerhaeuser's CBPR business into our North American packaging platform fits very well with our strategy to improve our earnings, cash flow and returns by strengthening existing businesses. The acquisition expands IP's geographic presence in the U.S. and Mexico and diversifies the customer base in key product lines. |