The transaction includes nine containerboard mills, 72 packaging locations, 10 specialty-packaging plants, four kraft bag and sack locations and 19 recycling facilities. (See list at end of release for locations.) The transaction affects approximately 14,300 employees.
Steven R. Rogel, chairman and chief executive officer, said the announcement completes the company’s strategic review of the CBPR business.
“We are pleased with the outcome and we will continue to focus on those areas that present the greatest opportunities for the future,” Rogel said. “This future begins with the trees and the land, and our outstanding stewardship of these resources. To this we add our unique expertise in growing and extracting value from the trees and the land on which they grow.
“I want to thank the CBPR employees for their dedication, patience and professional approach during this review. Their efforts continue to improve the performance of this business and I’m confident that this transaction positions CBPR for an even more successful future.”
The transaction is subject to customary closing conditions including regulatory review and receipt of financing by International Paper. The transaction is currently expected to close in the second half of 2008. International Paper has committed financing for the entire purchase price. Weyerhaeuser CBPR and International Paper will continue to operate separately until the transaction closes.
Morgan Stanley acted as financial advisor to Weyerhaeuser in the transaction.
FORWARD LOOKING STATEMENT
This news release 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. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “may,” “will,” “believes,” “should,” “approximately,” anticipates,” “estimates,” and “plans,” or comparable terminology or by discussions of strategy, plans or intentions.
These forward-looking statements relate to trends in or management’s beliefs about the company’s markets, earning, performance of the company’s business segments, ability to capture business opportunities, price realizations, demand, sales volumes, pricing for the company’s products and related matters. These statements reflect management’s current beliefs and are based on information currently available to management. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to the ability of the parties to successfully consummate the transactions contemplated by the purchase agreement, the successful fulfillment (or waiver) of all conditions included in the purchase agreement, the successful financing of the transaction, the successful closing of the transaction within the estimated timeframes, general economic and business conditions, market demand for the company’s products, the successful execution of strategies, the level of competition from domestic and foreign producers, product selling prices, raw material and operating costs, changes in foreign currency exchange rates, the performance of manufacturing operations, the ability to realize anticipated cost savings and other factors.
These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. Although the forward-looking statements are based on what management believes to be reasonable estimates and assumptions, actual results may be materially different from those expressed or implied by these forward-looking statements. Unless specifically required by law, the company expressly declines any obligation to update or revise these forward-looking statements to reflect new events or circumstances.
Nine containerboard mills (6.3 million tons capacity)
Alabama: Pine Hill
Iowa: Cedar Rapids
Oregon: Albany, Springfield
72 packaging locations (99.4 billion square feet capacity)
Arizona: Phoenix, Yuma
Arkansas: Fort Smith,Russellville
California: Anaheim, Camarillo, Compton, Elk Grove, Exeter, Modesto, Salinas, Sanger, Santa Paula
Florida: Plant City, Tampa
Georgia: Columbus, Griffin, Lithonia
Illinois: Aurora, Bedford Park, Belleville, Lincoln, Montgomery, Rockford
Indiana: Butler, Indianapolis
Iowa: Cedar Rapids, Waterloo
Kansas: Kansas City
Kentucky: Bowling Green, Louisville
Michigan: Three Rivers, Warren
Minnesota: Austin, Fridley, St. Paul, White Bear Lake
Mississippi: Jackson, Magnolia, Olive Branch
Missouri: Maryland Heights, St. Joseph
New Jersey: Barrington, Bellmawr
New York: Rochester
North Carolina: Charlotte, Lumberton, Newton
Ohio: Delaware, Eaton, Mount Vernon
Oklahoma: Oklahoma City
Oregon: Beaverton, Portland
Texas: Amarillo, Dallas, McAllen, Sealy
Washington: Bellevue, Moses Lake, Olympia, Yakima
Mexico: Ixtac, Mexico City, Monterrey, Silao
10 specialty packaging plants
North Carolina: Charlotte
Oregon: Beaverton, Hillsboro, Salem
Four kraft bag and sack locations (199,000 tons capacity)
California: Buena Park
North Carolina: Charlotte
19 recycling facilities
California: Fremont, Los Angeles/Norwalk, West Sacramento
Iowa: Des Moines
Minnesota: New Brighton
North Carolina: Charlotte
Oregon: Beaverton, Eugene
Utah: Salt Lake City