Wausau Selling Wisconsin Timberlands to Support Tissue Expansion
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Wausau Paper, Mosinee, Wis., USA, this week agreed to sell the its remaining timberland holdings, totaling approximately 80,200 acres in Northern Wisconsin, for $42.9 million. Marketed and brokered by LandVest Timberlands, Wausau Paper reached separate agreements to sell approximately 72,800 acres to The Lyme Timber Co. and approximately 7,400 acres to The Forestland Group. Both transactions are expected to close prior to the end of this year.
Income tax obligations resulting from the sale transactions are expected to be offset by losses associated with the previously announced 2012 closure of the Paper unit's Brokaw, Wis., manufacturing facility, bonus depreciation associated with recent capital investments, and remaining cellulosic biofuels tax credits. The available tax offsets provide cash efficiency by effectively deferring the tax obligation associated with the transactions for a period of up to six years.
"Sale of our remaining timberlands is consistent with our approach to support investment and growth in our highly successful tissue business," said Thomas J. Howatt, president and CEO. "Sales proceeds will allow us to reduce financing requirements associated with the tissue expansion project and, combined with our recently-announced exit from the Print & Color markets, narrows our focus to attractive away-from-home tissue and growth-oriented technical markets."
Wausau Paper produces specialty papers for industrial, commercial, and consumer end markets as well as a complete line of away-from-home towel and tissue products.
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