Weyerhaeuser Company, Federal Way, WA, has sold its Containerboard Packaging and Recycling business to International Paper for $6 billion in cash. Weyerhaeuser said it expects to use a substantial portion of the after-tax proceeds from the sale to pay down debt.
The transaction includes nine containerboard mills, 72 packaging locations, 10 specialty-packaging plants, four kraft bag and sack locations and 19 recycling facilities.
Steven R. Rogel, chairman and chief executive officer, said the announcement completes the company’s strategic review of the CBPR business.
The transaction is currently expected to close in the second half of 2008. International Paper has committed financing for the entire purchase price.
Weyerhaeuser Company, a global forest products company, had sales in 2007 of $16.3 billion.