Weyerhauser to Sell Canadian and Certain U.S. Building Materials Distribution
Assets
Filed
by:
Weyerhaeuser Company
Pursuant
to Rule 425
under the
Securities
Act of
1933
Subject
Company:
Weyerhaeuser Company
Commission
File No.:
333-140411
On
February 16, 2007, Weyerhaeuser Company issued the following press
release:
For
immediate release
For
more information contact:
Weyerhaeuser:
Canada
Media -- Sarah
Goodman, (604)
661-8116
U.S.
Media --
Frank
Mendizabal,
(253) 924-3357
Analysts
--
Kathryn
McAuley,
(253) 924-2058
Platinum
Equity:
Mark
Barnhill
310-228-9514
Weyerhaeuser
to Sell Canadian and Certain U.S. Building Materials Distribution
Assets
FEDERAL
WAY,
Wash.
(February
16, 2007)
- Weyerhaeuser Company (NYSE: WY) today reaffirmed its commitment to sharpen
the
focus of its portfolio by announcing its intent to sell its Canadian and select
U.S. building materials distribution centers.
“The
sale of these
distribution centers is part of our ongoing effort to sharpen the focus of
our
portfolio and enhance shareholder value,” said Lee T. Alford, senior vice
president of residential wood products. “Weyerhaeuser is committed to being the
undisputed leader in structural frame markets and will continue to invest in
innovative products, new building systems, software solutions and in-market
distribution services.”
Canada:
Weyerhaeuser
is in
final negotiations for the Canadian wholesale building products distribution
centers with Platinum Equity, a Los Angeles based private equity firm whose
holdings include service and distribution businesses in a number of market
sectors. The transaction is expected to be completed during the second quarter,
2007.
All
of the company’s distribution centers in Canada are affected and include:
Brampton, Ontario; Calgary, Alberta; Dartmouth, Nova Scotia; Edmonton, Alberta;
Kelowna, British Columbia; Montreal, Quebec; Ottawa, Ontario; Quebec City,
Quebec; Regina, Saskatchewan; Saskatoon, Saskatchewan; Sudbury, Ontario;
Timmins, Ontario;
Winnipeg,
Manitoba;
St. John’s, Newfoundland; Sussex, New Brunswick; Langley, British
Columbia.
Platinum
executives
said the distribution business would be established as a stand-alone company
focused not only on sustaining current operations, but also identifying
potential opportunities for growth.
“We
are very excited about this business and its potential as a platform for future
growth,” said Jacob Kotzubei, the Platinum executive leading the acquisition.
“We are acquiring an established distribution business with strong fundamentals
and a capable and talented staff of employees. That’s a terrific base to build
on. We’re also entering a dynamic market that presents opportunity for growth
both organically and, potentially, through add-on acquisitions. We are very
committed to building this business for the long term,” Kotzubei
said.
Platinum
has a long
track record of acquiring non-core business units from strategic sellers, and
establishing them as successful stand-alone businesses.
Platinum
Equity is a
global M&A&O® firm specializing in the merger, acquisition and operation
of companies that provide services and solutions to customers in a broad range
of business markets, including information technology, telecommunications,
logistics, manufacturing, and entertainment distribution. Since its founding
in
1995 by Tom Gores, Platinum has acquired more than 70 businesses with more
than
$16 billion in aggregate annual revenue at time of acquisition.
United
States:
Weyerhaeuser
is in
preliminary negotiations with a buyer for ten U.S. building distribution sites.
No further details on that transaction are available at this time.
The
ten building materials distribution sites for sale in the U.S. include:
Louisville, Ky.; Memphis, Tenn.; Nashville, Tenn.; Green Bay, Wis.; Kansas
City,
Kan.; Oklahoma City; Omaha, Neb.; Newton, Kan.; Boston; and Buffalo,
N.Y.
In
most major U.S. markets, Weyerhaeuser will continue to own, operate and
strengthen its network of distribution centers to fully service customer needs.
The company will retain a comprehensive network of 40 distribution facilities
in
the U.S. -- servicing markets that account for 85 percent of U.S. housing
starts.
“While
Weyerhaeuser’s iLevel businesses will operate in a different way in Canada and
select U.S. markets, all these markets remain important to us,” said Alford.
“For these markets, we believe that we can best serve our customers by working
with independent building material distributors committed to growing their
business. This proven independent distribution model, combined with retaining
strong in-field Weyerhaeuser sales and technical support teams, will allow
us to
deliver first-class support to our customers as we strive to grow demand for
our
products.”
All
of these centers distribute a wide range of building materials, including
engineered wood products, oriented strand board, panels, framing lumber, and
plywood panels; appearance grade and other cedar products; and specialty
products such as exterior siding, insulation, rebar, and roofing. Weyerhaeuser
products will continue to be distributed through these outlets.
Weyerhaeuser
Company, one of the world’s largest integrated 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.