Weyerhaeuser sells liquid packaging board business

Weyerhaeuser Company has reached a deal with Japanese company Nippon Paper Industries Co. to sell the final piece of its cellulose fibers business.

Nippon has agreed to buy Weyerhaeuser's liquid packaging board business for $285 million cash, which will largely go toward paying off Weyerhaeuser's debt.

The transaction includes one mill located in Longview, Washington, with an annual capacity of 280,000 tons.

The strategic review of the cellulose fibers business began 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 CEO.

"The employees of our liquid packaging board business have much to contribute to the future success of Nippon Paper Industries.  I want to thank our team for continuing to operate safely, and for delivering an exceptional customer experience throughout the strategic review process," said Simons. "Our liquid packaging board products and people are celebrated across the industry for their quality."

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.