Weyerhaeuser Co. to Acquire MacMillan Bloedel Ltd., of Canada
6/21/99
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Title: Weyerhaeuser Co. to acquire MacMillan Bloedel Ltd., of Canada
Source: Associated Press
Status: Copyright 1999, contact source for permission to reprint
Date: June 21, 1999
SEATTLE (AP) - Weyerhaeuser Co. is buying rival forest products
company MacMillan Bloedel Ltd. of Canada for stock valued at about
$2.45 billion.
The agreement disclosed today would make Weyerhaeuser, already the
world's largest producer of softwood lumber and market pulp, a leader
in packaging.
When complete, the transaction will boost Weyerhaeuser's annual sales
to about $13.3 billion from $10.8 billion last year.
Weyerhaeuser expects to achieve some $150 million in annual benefits
as a result of the deal through savings in transportation and
distribution, improving purchasing practices, increasing the balance
in its manufacturing system and streamlining operations.
The boards of both companies have approved an agreement under which
MacMillan Bloedel shareholders would get 0.28 share of Weyerhaeuser
stock for each share of MacMillan Bloedel.
``We are acquiring modern and well-maintained manufacturing facilities
throughout Canada and the United States that fit naturally with our
operations, plus we add some of the highest quality timberlands in
Canada and the Southern U.S. to our portfolio,'' said Weyerhaeuser
chairman and chief executive Steven R. Rogel.
The transaction, which is expected to close this fall, is subject to
regulatory approval in the United States and Canada, court approval in
Canada and a favorable vote by MacMillan Bloedel shareholders.
``We believe that this combination will create the powerhouse in the
industry,'' said Tom Stephens, MacMillan Bloedel president and chief
executive officer.
Weyerhaeuser is one of the world's largest integrated forest products
companies, with offices or operations in 12 countries.
Of its 35,000 North American employees, 5,900 currently work for
Weyerhaeuser Canada, which is headquartered in Vancouver, British
Columbia.
The company owns or manages 5.3 million acres of timberland throughout
the United States and has timber licenses on 27 million acres in
Canada.
Its North American operations produce pulp, paper, packaging, lumber
and structural panels that are sold around the world.
MacMillan Bloedel employs 9,500 people, with 5,500 in Canada.
It has 6.9 million acres of productive timberlands, of which 427,500
acres are held in the United States.
It has 33 distribution centers located through the United States and
Canada.