United States | One of the world’s leading paper producers, Weyerhaeuser, has announced the sale of its Containerboard Packaging and Recycling (CBPR) business to its rival International Paper for US$ 6 billion (Euro 3.85 billion) in cash. Weyerhaeuser says it expects to use a substantial portion of the after-tax proceeds from the sale to pay down debt.

International Paper has committed financing for the entire purchase price and the transaction is currently expected to close in the second half of 2008. The takeover package includes nine containerboard mills, 72 packaging locations, 10 specialty packaging plants, four kraft bag and sack locations, and 19 recycling facilities. According to Weyerhaeuser, the transaction affects approximately 14 300 employees.

Weyerhaeuser Chairman and CEO Steven Rogel says 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,’ he states. ‘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.’

Incorporated in 1900 and now operating in 13 countries, Weyerhaeuser is one of the world’s largest forest products companies. Company sales amounted to US$ 16.3 billion last year. International Paper is a global forest products, paper and packaging company with primary markets and manufacturing operations in the USA, Europe, Latin America and Asia. It achieved sales in 2006 of US$ 22 billion.

Acknowledgement

www.weyerhaeuser.com
www.internationalpaper.com