Weyerhaeuser Co., Seattle, Wash., USA, this week announced the completion of the sale of its Cellulose Fibers pulp mills to International Paper, Memphis, Tenn., for $2.2 billion in cash. Weyerhaeuser expects to use a substantial portion of the $1.6 billion after-tax proceeds for repayment of debt. 

The sale, which was announced in May 2016, includes five pulp mills located in Columbus, Miss.; Flint River, Ga.; New Bern, N.C.; Port Wentworth, Ga.; and Grand Prairie, Alberta, with a combined total annual operating capacity of about 1.9 million metric tons. The sale also includes two modified fiber mills in Columbus, Miss. and Gdansk, Poland. 

This transaction completes the divestiture of Weyerhaeuser's Cellulose Fibers business, which resulted from the company's strategic review initiated in November 2015. Earlier this year, the company completed the sale of its liquid packaging board business to Nippon Paper Industries Co., Japan, and the sale of its publishing papers business to One Rock Capital Partners.

"The sale of our pulp mills delivers compelling value for our shareholders and represents a significant milestone on our journey to focus our portfolio and become the world's premier timber, land, and forest products company," said Doyle R. Simons, president and CEO. "International Paper is gaining world-class mills and a highly regarded team of employees who will be well-positioned to reach their full potential as part of a first-class packaging, pulp, and paper manufacturer."

Weyerhaeuser, one of the world's largest private owners of timberlands, began operations in 1900. It owns or controls more than 13 million acres of timberlands, primarily in the U.S., and manages additional timberlands under long-term licenses in Canada. The company manages these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. Weyerhaeuser also is one of the largest manufacturers of wood products. The company is a real estate investment trust. In February 2016, it merged with Plum Creek Timber Co.

In 2015, Weyerhaeuser (including its Cellulose Fibers business) and Plum Creek, on a combined basis, generated approximately $8.5 billion in net sales and employed nearly 14,000 people who serve customers worldwide.