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UFP Industries, Inc. (UFPI) - free report >>
Weyerhaeuser Company (WY) - free report >>
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Weyerhaeuser to Sell Liquid Packaging Facility to Nippon
Forest product manufacturer and supplier Weyerhaeuser Company (WY - Free Report) strikes another divestment deal, moving a step closer towards the completion of the strategic review of its Cellulose Fibers businesses. This time, the company signed an agreement with Nippon Paper Industries Co., Ltd. to sell its liquid packaging board business for approximately $225 million.
As revealed, the transaction relates to the sell-off of Weyerhaeuser’s Longview, Wash.-based mill, which has an annual capacity of 280,000 tons. Subject to customary closing conditions, the transaction is likely to be completed in the third-quarter 2016. Until the completion, both the parties will be operating separately.
Weyerhaeuser plans to use a major portion of the divestment-proceeds to repay debts.
In May 2016, Weyerhaeuser signed an agreement to sell its Cellulose Fibers pulp mills, with a combined production capacity of 1.9 million metric tons, for approximately $2.2 billion cash to International Paper Company (IP - Free Report) . Back in Nov 2015, the company had received approval from its board of directors’ for finding strategic alternatives for its Cellulose Fibers business.
We believe disposition of the above-mentioned assets will enable Weyerhaeuser concentrate on its core timber, land, and forest products business. However, the company is still working on finding a suitable alternative for its publishing papers joint venture facility. Below we provide the company's price chart:
WEYERHAEUSER CO Price
WEYERHAEUSER CO Price | WEYERHAEUSER CO Quote
Weyerhaeuser, with a market capitalization of $21.4 billion, currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the building products industry include Louisiana-Pacific Corp. (LPX - Free Report) and Universal Forest Products Inc. (UFPI - Free Report) . While Louisiana-Pacific sports a Zacks Rank #1(Strong Buy), Universal Forest Products carries a Zacks Rank #2 (Buy).
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