FEDERAL WAY, Wash., June 15, 2016 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced an agreement to sell its
liquid packaging board business to Nippon Paper Industries Co., Ltd. for $285 million in cash.
Weyerhaeuser expects to use a substantial portion of the estimated $225 million after-tax proceeds
for repayment of debt.
The transaction includes one mill located in Longview, Wash., with an annual capacity of
280,000 tons.
This announcement concludes a portion of the strategic review of the company's Cellulose Fibers business, which was initiated
in November 2015. Weyerhaeuser announced the planned sale of its pulp mills in May 2016. The company's review of its printing papers joint venture is ongoing.
"This transaction creates significant value for Weyerhaeuser shareholders and enhances the focus of our portfolio as we work
to be the world's premier timber, land, and forest products company," said Doyle R. Simons,
president and chief executive officer.
"The employees of our liquid packaging board business have much to contribute to the future success of Nippon Paper
Industries. I want to thank our team for continuing to operate safely, and for delivering an exceptional customer
experience throughout the strategic review process," said Simons. "Our liquid packaging board products and people are celebrated
across the industry for their quality."
The transaction is subject to customary closing conditions, including regulatory review, and is expected to close in the third
quarter 2016. The Weyerhaeuser liquid packaging board mill and Nippon Paper Industries will continue to operate separately until
the transaction closes.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest
private owners of timberlands, began operations in
1900. We own or control more than 13 million acres of timberlands, primarily in the U.S., and manage additional timberlands under
long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally
recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose
fibers products. Our company is a real estate investment trust. In February 2016, we merged
with Plum Creek Timber Company, Inc. In 2015, Weyerhaeuser and Plum Creek, on a combined basis, generated approximately
$8.5 billion in net sales and employed nearly 14 thousand people who serve customers worldwide. We
are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol
WY. Learn more at www.weyerhaeuser.com.
FORWARD-LOOKING STATEMENTS
This communication contains statements concerning the company's future results, performance and plans that are
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without
limitation, with respect to any potential transaction or transactions involving Weyerhaeuser's Cellulose Fibers business or the
structure or timing of any such transaction or transactions, the use of proceeds from any such transaction or transactions, as
well as the risk factors disclosed in Weyerhaeuser's filings with the SEC, including Weyerhaeuser's annual reports on Form 10-K
for the year ended December 31, 2015. These forward-looking statements are based on various
assumptions and are subject to various contingencies and may not be accurate because of risks and uncertainties surrounding these
assumptions and contingencies. Factors listed above, as well as other factors, may cause actual results to differ significantly
from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking
statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or
financial condition. The company will not update these forward-looking statements after the date of this news release.
For more information contact:
Media – Anthony Chavez,
253-670-1522
Financial Media – Andrew Siegel, 212-355-4449
Analysts – Beth Baum, 253-924-3815
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SOURCE Weyerhaeuser Company