The Rising Influence of Rising Affluence

[DewDiligence]

WY sells pulp business to IP for $2.2B ($1.6B after taxes) in cash:

http://finance.yahoo.com/news/weyerhaeuser-sell-cellulose-fibers-pulp-120000904.html

The transaction includes five pulp mills located in Columbus, Miss.; Flint River, Ga.; New Bern, N.C., Port Wentworth, Ga. and Grande Prairie, Alberta, with a combined total capacity of nearly 1.9 million metric tons. The sale also includes two modified fiber mills in Columbus, Miss. and Gdansk, Poland.

The announcement completes the first phase of the company's strategic review of the Cellulose Fibers business. The transaction with International Paper does not include Weyerhaeuser's liquid packaging board facility or newsprint and publishing papers joint-venture. Weyerhaeuser's review of those assets is ongoing.

Divestiture of WY’s entire cellulose-fibers business was contemplated when WY merged with PCL. When such divestitures are completed, WY will be a purer play on timberlands assets—i.e. more similar to what PCL was.