Longview Fibre selling 8 Eastern US box plants
March 23, 2007 - Longview Fibre Co. on March 19 agreed to sell eight Eastern U.S. box plants for $80.7 million. The company announced the news on March 21.
According to The Daily News (Longview, Wash.), the converting plants have been on the market for nearly a year. The buyer, Deleware-based U.S. Corrugated Inc., owns several other corrugated operations in the Southeast U.S.
In April 2006, Longview announced it would seek possible buyers for its eastern U.S. plants.
Selling the eight box plants won't affect Longview's potential $2.5 billion sale to Toronto-based Brookfield Asset Management, which was announced Feb. 5, The Daily News said.
U.S. Corrugated Inc. is a new company, formed last year when Four M Holdings LLC bought LINPAC Inc, which had corrugated packaging facilities including a recycled containerboard mill, three sheet feeders and two sheet converting plants.
Under the agreement, for three years following the closing date, Longview may not manufacture, produce, distribute or sell products in certain parts of the eastern and central United States that are similar to those being sold without U.S.C.'s prior written consent, The Daily News report said.
The deal is expected to close in mid- to late April.
SOURCE: The Daily News