Weyerhaeuser to Sell NORPAC to One Rock Capital Partners
NORPAC is one of the largest manufacturers of high-quality super and high bright printing papers and newsprint in North America. Products include: printing and publishing papers, copy paper, and newsprint. The mill has the capacity to produce 750,000 tons per year.
Oct. 5, 2016 - Weyerhaeuser Company today announced an agreement to sell North Pacific Paper Company ("NORPAC"), the company's printing papers business, to One Rock Capital Partners, LLC ("One Rock"). Weyerhaeuser expects to use a substantial portion of the after-tax proceeds from the transaction for the repayment of debt.
The transaction includes the printing papers mill located in Longview, Washington. Weyerhaeuser has operated the business through a 50-50 joint venture with Nippon Paper Industries Co., Ltd.
Terms of the transaction were not disclosed.
NORPAC is one of the largest manufacturers of high-quality super and high bright printing papers and newsprint in North America. It operates a thermo-mechanical pulp mill that refines chips to separate fibers for papermaking, an advanced de-inking facility that processes old newspapers and magazines for high-quality recycled fiber, and a six-acre shipping warehouse that uses state-of-the-art vacuum trucks to minimize damage to newsprint rolls.
NORPAC products include: printing and publishing papers, copy paper, and newsprint. The mill has the capacity to produce 750,000 tons per year.
"Through our strategic review of the Cellulose Fibers business we have enhanced the focus of our company and created significant value for Weyerhaeuser shareholders," said Doyle R. Simons, president and chief executive officer. "We will continue to build on this strong foundation as we work together to be the world's premier timber, land, and forest products company. We are proud of the contributions NORPAC employees have made to Weyerhaeuser and will continue to make in the future as part of One Rock."
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2016.
The NORPAC business will continue to operate independently of One Rock until the transaction closes.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, owns or controls more than 13 million acres of timberlands, primarily in the U.S., and manages additional timberlands under long-term licenses in Canada. To learn more please visit: www.weyerhaeuser.com.
SOURCE: Weyerhaeuser Company