It was hinted at months ago, but now it’s official. Weyerhaeuser is selling off its cellulose fibers pulp mills to International Paper for $2.2 billion in cash.
The deal includes five pulp mills in Columbus, Miss., Flint River, Ga., New Bern, N.C., Port Wentworth, Ga. and Grand Prairie, Alberta, which together produce nearly 1.9 million metric tons. Two modified fiber mills were also thrown in.
“This transaction delivers compelling value for Weyerhaeuser shareholders and further focuses 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.
When Weyerhaeuser announced an $8.4 billion deal to acquire Plum Creek, it released a separate announcement saying it would look into selling off the cellulose fibers segment.
This isn’t the first time a transaction involved International Paper. Weyerhaeuser sold off its containerboard unit to the Memphis, Tenn.-based company for $6 billion in March of 2007.