Nippon Paper Industries Co., Ltd. completed the acquisition of liquid packaging board business from Weyerhaeuser NR Company.
August 30, 2016
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Nippon Paper Industries Co., Ltd. (TSE:3863) entered into an agreement to liquid packaging board business from Weyerhaeuser NR Company for approximately $290 million on June 15, 2016. The transaction includes one mill located in Longview, Washington. The Weyerhaeuser liquid packaging board mill and Nippon Paper Industries will continue to operate separately until the transaction closes. The liquid packaging board business reported net sales of $362 million, gross profit of $23 million, operating income of $9 million and total assets of $292 million in the financial year ended December 31, 2015. The transaction is subject to customary closing conditions, receipt of required regulatory approvals, including expiration of the waiting period required pursuant to the provisions of the Hart-Scott-Rodino Antitrust Act and execution and delivery of certain ancillary transaction agreements. The deal received early termination of Antitrust Approval Waiting Period on August 3, 2016. The disposition is not subject to a financing condition. The deal is expected to close in the third quarter 2016. Weyerhaeuser expects to use a substantial portion of the estimated $225 million after-tax proceeds for repayment of debt. Moelis & Company acted as financial advisor for Weyerhaeuser.
Nippon Paper Industries Co., Ltd. (TSE:3863) completed the acquisition of liquid packaging board business from Weyerhaeuser NR Company on August 31, 2016.
Nippon Paper Industries Co., Ltd. is a Japan-based company mainly engaged in the manufacture and sale of paper products, as well as the energy business, and the construction materials and civil engineering business. The Company has four business segments. The Paper and Paperboard segment is engaged in the manufacture and sale of western paper, paperboard, thermal paper, pulp and papermaking raw materials. The Lifestyle Related segment is engaged in the manufacture and sale of household paper, container base paper, processed paper products, cardboard and chemical products. The Energy segment is engaged in the operation of power generation facilities, as well as the provision and sale of electricity. The Lumber, Construction Materials and Civil Engineering Related segment is engaged in the purchase and sale of lumber, the manufacture, purchase and sale of construction materials, and the civil engineering business. The Company is also engaged in the logistics and leisure business.