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Finnforest Agrees to Buy Weyerhaeuser’s European Engineered Wood Products Sales Operations
Jan 14, 2008
FEDERAL WAY, Wash., January 14, 2008 — Weyerhaeuser Company (NYSE: WY) today announced that it has reached a definitive agreement to sell its iLevel European engineered wood products operations to Finnforest of Finland, part of the Metsaliitto Group. Terms of the sale were not disclosed.
The transaction includes approximately 30 associates in the sales and technical support organization. The sale also includes supply commitments for iLevel’s wood products brands in Europe and a diversified customer base composed primarily of wholesale distribution companies, building materials dealers, structural systems suppliers and industrial manufacturers.
“This sale will allow iLevel to focus on its core North American residential wood products business,” said Carlos Guilherme, vice president of sales for Weyerhaeuser’s iLevel wood products business.
Guilherme said the transaction is a good strategic move for both companies and that Finnforest is committed to the long-term development of engineered wood products in Europe.
“Thanks to the efforts of associates, Weyerhaeuser was able to help build a stronger and more competitive engineered wood products industry in Europe. That improved competitiveness was critical in attracting the interest of Finnforest,” said Guilherme.
Finnforest is a solutions provider offering products and services to targeted customer segments, such as building and construction, transport vehicle industry, other industrial customers as well as building material and DIY chains. With sales of 1.3 billion euros, Finnforest employs 4,400 people in 20 countries. They are a part of the Metsäliitto Group, one of the largest forest industry groups in the world.
Weyerhaeuser will exit only its iLevel engineered wood products business in Europe. Following the transaction, the company will continue to have a South American plywood and hardwood sales office and Cellulose Fibers presence in Europe.
Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900. In 2006, sales were $21.9 billion. It has offices or operations in 18 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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