US-based private timberland owner Weyerhaeuser will be seeking strategic alternatives for its cellulose fibres business, which produces liquid packaging board, and absorbent and papergrade pulp.
The firm intends to explore multiple options for its business, which will either involve selling or spinning-off the unit or continuing to hold and operate it.
Go deeper with GlobalData
Currently under consideration, the business unit includes five operating pulp mills, two modified fibre mills, one liquid packaging board facility, and one publishing paper joint-venture facility.
Weyerhaeuser president and CEO Doyle R Simons said: "We have consistently improved the performance of this business while continuing to meet the needs of our worldwide customers.
"We believe now is the right time to evaluate all options to ensure the best long-term results for this business and at the same time, create the most value for our shareholders by further focusing our portfolio."
See Also:
However, the firm is only currently looking at evaluation.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataWeyerhaeuser said this might or might not result in any transaction, and even if a transaction is pursued, it might not lead to consummation.
The firm has also reached a definitive merger agreement with Plum Creek, which will lead to the creation of a joint company with an anticipated equity value of $23bn.
While Weyerhaeuser will be a majority owner of the combined entity with a 65% stake, Plum Creek and Plum Creek will own the remaining 35% share.
