Seattle, Washington, USA 05 Octobet 2016 -- /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced an agreement to sell North Pacific Paper Company ("NORPAC"), the company's printing papers business, to One Rock Capital Partners, LLC One Rock. Weyerhaeuser expects to use a substantial portion of the after-tax proceeds from the transaction for the repayment of debt.
The transaction includes the printing papers mill located in Longview, Wash. Weyerhaeuser has operated the business through a joint venture with Nippon Paper Industries Co., Ltd. Terms of the transaction were not disclosed.
This announcement completes the company's strategic review of the Cellulose Fibers business. The company recently announced the sale of its pulp mills and liquid packaging board business.
"Through our strategic review of the Cellulose Fibers business we have enhanced the focus of our company and created significant value for Weyerhaeuser shareholders," said Doyle R. Simons, president and chief executive officer. "We will continue to build on this strong foundation as we work together to be the world's premier timber, land, and forest products company. We are proud of the contributions NORPAC employees have made to Weyerhaeuser and will continue to make in the future as part of One Rock."
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2016. The NORPAC business will continue to operate independently of One Rock until the transaction closes.
Moelis & Company acted as financial advisor to Weyerhaeuser in the transaction.
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.
This communication contains statements concerning the company's future results and performance 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 involving NORPAC or the structure or timing of any such transaction, the use of proceeds from any such transaction, 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 may not be accurate because of risks and uncertainties surrounding these assumptions. 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.