Weyerhaeuser, MacBlo Merger Complete
11/2/99
*******************************
RELAYED TEXT STARTS HERE:
Title: WEYERHAEUSER, MACBLO Merger Complete
Source: Environment News Service, http://www.ens.lycos.com/
Status: Copyright 1999, contact source for permission to reprint
Date: November 2, 1999
FEDERAL WAY, Washington, November 2, 1999 (ENS) - Weyerhaeuser
completed its US$2.45 billion acquisition of MacMillan Bloedel
Limited Monday, creating the world's largest North American forest
products company. The final hurdle was cleared when the Supreme Court
of British Columbia granted approval of the merger on Friday.
The MacMillan Bloedel website address now displays the words
"MacMillan Bloedel is now a part of Weyerhaeuser Company" and clicks
through automatically to the Weyerhaeuser website.
The company's board of directors plans to elect Richard Haskayne,
former chairman of MacMillan Bloedel, to the Weyerhaeuser Company
board. Haskayne, who also serves as chairman of TransCanada PipeLines
Limited, will be one of three Canadians on the Weyerhaeuser board.
The agreement provides MacMillan Bloedel shareholders with 0.28
shares of common stock in Weyerhaeuser or 0.28 equivalent
exchangeable shares in a new Weyerhaeuser Canadian subsidiary for
each MacMillan Bloedel common share owned.
The firm will now operate as the world's largest producer of softwood
lumber and market pulp and the third largest producer of
containerboard in the United States. It remains the the world's
second largest manufacturer of oriented strand board (OSB) and
largest owner of softwood timber.
"Today is an important day for Weyerhaeuser as we bring together two
great North American companies to create a powerhouse in the forest
products industry," said president and CEO Steven Rogel Monday. "In
one dramatic step, we're significantly increasing our production
capacity and extending our ability to reach and serve customers."
Rogel said the transaction allows Weyerhaeuser to integrate modern
manufacturing facilities throughout Canada and the United States into
its existing operations, while adding some of the highest quality
timberlands in Canada and the Southern U.S. to Weyerhaeuser's
portfolio.
Rogel expressed confidence in the combined workforce. "The employees
of both companies have spent the last two years focused on making
their operations safer and more efficient," Rogel said. "Working
together, these talented people will continue to help us pursue
further improvements and develop ways to better meet the needs of our
global customer base." The company now employs 45,000 people
throughout North America.
Weyerhaeuser said it expects to realize significant benefits through
savings in transportation and distribution, improving purchasing
practices, increasing the balance in its manufacturing system, and
streamlining operations.
Through the acquisition of MacMillan Bloedel, Weyerhaeuser will own
or operate:
5.7 million acres of timberland (2.3 million hectares) in the United
States and hold timber licenses on 33.5 million acres in Canada.
Seven containerboard mills with an annual capacity of 3.7 million
tons and 64 converting facilities with an annual production
capability of 58.5 billion square feet of packaging.
Nine OSB facilities with an annual capacity of 3.3 billion square
feet (3/8 basis). A new Saskatchewan OSB mill, currently under
construction, will add 570 million square feet (3/8 basis).
Seven plywood mills with an annual capacity of 1.2 billion square
feet (3/8 basis).
33 softwood sawmills with the capacity to produce nearly five billion
board feet of lumber a year. This includes six mills that produce
high value specialty lumber from Western Red Cedar and other
specialty grades in British Columbia.
80 building materials distribution centers located throughout the
United States and Canada.
Weyerhaeuser Company, one of the world's largest integrated forest
products companies, was incorporated in 1900. Its 1998 sales were
$10.8 billion. It has offices or operations in 12 countries, with
customers worldwide. The firm is principally engaged in the growing
and harvesting of timber; the manufacture, distribution and sale of
forest products; and real estate construction, development and
related activities.