Weyerhaeuser Company announced an agreement to sell its liquid packaging board business to Nippon Paper Industries Co., Ltd. for $285 million in cash.
The transaction includes one mill located in Longview, Wash., with an annual capacity of 280,000 tons.
This announcement concludes a portion of the strategic review of the Weyerhaeuser's Cellulose Fibers business, which was initiated in November 2015. Weyerhaeuser announced the planned sale of its pulp mills in May 2016. The company's review of its printing papers joint venture is ongoing.
"This transaction creates significant value for Weyerhaeuser shareholders and enhances the focus of 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.
The transaction is subject to customary closing conditions, including regulatory review, and is expected to close in the third quarter 2016. The Weyerhaeuser liquid packaging board mill and Nippon Paper Industries will continue to operate separately until the transaction closes.
