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Weyerhaeuser Signs a Non-Binding Letter of Intent to Sell Commercial Construction Business to Atlas Holdings
Oct 10, 2008
FEDERAL WAY, Wash., October 10, 2008 — Weyerhaeuser Company (NYSE: WY) signed a non-binding letter of intent to sell its Trus Joist® Commercial division (“Commercial Business”) to Greenwich, Connecticut-based Atlas Holdings.
The proposed transaction will include four manufacturing plants across the United States (located in Chino, Calif.; Hillsboro, Ore.; Delaware, Ohio and Stayton, Ore.) and 13 sales and engineering offices. About 428 employees concentrated in the Northwest, Southwest and East serve the business.
“Our goal is to ensure that the Commercial Business is optimized for long-term growth,” said Carlos Guilherme, iLevel vice president of sales. “After a thorough review of the alternatives, we believe the decision to explore the sale of this business and its assets to Atlas Holdings is in the best interests of our shareholders, employees and customers. At the same time, that outcome would allow Weyerhaeuser to narrow its focus on core strategies in the residential structural frame market.”
The transaction is subject to satisfactory negotiation of a final agreement and Board approval. The transaction is expected to close in the fourth quarter of 2008. This is the culmination of a strategic review for the business that started in February 2008. During the review, Weyerhaeuser looked at a variety of options, including continuing to hold and operate all or part of this business to a possible sale or combination.
The Commercial Business has served customers for the past 45 years by designing and delivering unique wood-based building solutions, including engineered lumber products and services, to the commercial building contractor.
Financial details were not disclosed.
Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900. In 2007, sales were $16.3 billion. It has offices or operations in 13 countries, with customers worldwide. Weyerhaeuser 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. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com.
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