Weyerhaeuser Company completes the sale of its Cellulose Fibers pulp mills to International Paper for $2.2 billion in cash. Weyerhaeuser expects to use a substantial portion of the $1.6 billion after-tax proceeds for repayment of debt, as the company says in the press release received by Lesprom Network.
The sale, which was announced in May 2016, includes five pulp mills located in Columbus, Miss.; Flint River, Ga.; New Bern, N.C.; Port Wentworth, Ga. and Grand Prairie, Alberta, with a combined total annual operating capacity of about 1.9 million metric tons. The sale also includes two modified fiber mills in Columbus, Miss. and Gdansk, Poland.
"The sale of our pulp mills delivers compelling value for our shareholders and represents a significant milestone on our journey to focus our portfolio and become the world's premier timber, land, and forest products company," said Doyle R. Simons, president and CEO. "International Paper is gaining world-class mills and a highly regarded team of employees who will be well-positioned to reach their full potential as part of a first-class packaging, pulp and paper manufacturer."
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900.
