Weyerhaeuser took another step toward streamlining its operations today, announcing the completion of the sale of its liquid packaging board business.
The timberland giant, currently based in Federal Way but soon moving to Seattle, first announced the sale to Japanese firm Nippon Paper Industries Co., Ltd. in June. The transaction is for $285 million in cash, with Weyerhaeuser expecting to use a substantial portion of the approximately $225 million of after-tax proceeds for repayment of corporate debt.
The liquid packaging board business consists of one mill located in Longview with an annual capacity of 280,000 tons. Weyerhaeuser originally announced it would be exiting the line of business last November.
“Nippon Paper Industries is acquiring a strong portfolio of high quality products and a well-regarded employee team that has contributed much to Weyerhaeuser over the years,” said Doyle R. Simons, president and chief executive officer. “This transaction further focuses our company as we work together to be the world's premier timber, land, and forest products company.”