Weyerhaeuser Company announced an agreement to sell North Pacific Paper Company, the company's printing papers business, to One Rock Capital Partners, LLC. 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.
