Weyerhaeuser to combine fine paper business



23 August 2006 — Federal Way (WA): Weyerhaeuser has reached an agreement to combine its fine paper business and related assets with Domtar.


"This transaction will create the North American market leader in fine paper and we anticipate that the combination will generate approximately $200 million in annual synergies within the next two years," said Steven Rogel, Weyerhaeuser’s chairman, president and CEO.


The transaction gives Weyerhaeuser shareholders 55 percent ownership in the new company and includes a $1.35 billion cash payment to Weyerhaeuser.