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WEYERHAEUSER STRENGTHENS CORE BUSINESSES WITH AGREEMENTS TO PURCHASE PROCTOR & GAMBLE PULP MILLS, SAWMILLS, TIMBERLANDS

 WEYERHAEUSER STRENGTHENS CORE BUSINESSES WITH AGREEMENTS TO
 PURCHASE PROCTOR & GAMBLE PULP MILLS, SAWMILLS, TIMBERLANDS
 TACOMA, Wash., Aug. 20 /PRNewswire/ -- Weyerhaeuser Co. (NYSE: WY) announced today it has signed an agreement to purchase two market pulp mills, three sawmills and approximately 175,000 acres of Southern timberland from the Procter & Gamble Co. (P&G)(NYSE:PG).
 President and Chief Executive Officer Jack Creighton called the purchase agreement "a great fit and a great opportunity that will provide immediate earnings and cash flow and long-term benefits to Weyerhaeuser."
 Three core Weyerhaeuser businesses are strengthened by the agreement. The company's world market pulp production capacity increases by 40 percent, its timberlands fee ownership and Canadian timberlands managed through provincial licenses by 16 percent and its softwood lumber production capacity by 12 percent.
 "This acquisition fits, it's timely and it's a win-win for both companies," Creighton said. "The fit is right because making pulp and lumber and growing trees are core businesses. The facilities are top performers, the people are highly skilled and motivated and P&G is an excellent company and customer. Both companies embrace and employ Total Quality as a key business strategy."
 "We are very pleased with our agreement with Weyerhaeuser," said P&G Chairman of the Board and Chief Executive Edwin L. Artzt. "We received a fair price for the pulp mills and our employees will be joining a fine company. Weyerhaeuser places a high value on its people and shares many of the same values and principles as P&G. We look forward to working with Weyerhaeuser as a supplier of pulp from these mills."
 The agreement includes a fluff pulp mill in Oglethorpe, Ga., a sawmill in Barnesville, Ga., and 175,000 acres of Georgia timberland. It also includes a softwood kraft pulp mill in Grande Prairie, Alberta, and sawmills in Grande Prairie and Grande Cache, Alberta. The operations employ approximately 1,500. The purchase price is $600 million.
 The agreement contains several standard conditions to closing, including approval of the transfer by the Alberta provincial government of the forest management license for 2.8 million acres of timberland.
 The pulp mills become part of a Weyerhaeuser pulp supply system that will include eight mills and a world-wide customer base. Procter & Gamble will remain a customer for the Oglethorpe and Grande Prairie mills. Fluff pulp from Oglethorpe is used for making baby diapers and kraft pulp from Grande Prairie is used to make tissue, towel and paper products.
 "It's an excellent opportunity," Creighton said, "because we strongly believe consumer demand for products requiring paper grade and fluff pulp will continue to be a growth market in the future. These high-quality assets will provide immediate returns and the acquisition positions us well for the long-term in these vital, growing markets.
 "This is the first major strategic opportunity since our refocusing effort and one of the largest in our history. We are growing strategically in core businesses with a clear focus on customers and demonstrated customer advantage. It is a significant step toward improving our ability to be the best forest products company in the world," Creighton said.
 -0- 8/20/92
 /CONTACT: Mike Walters, 206-924-3423, or Mike Bickford, 206-924-3207, both of Weyerhaeuser; or Kelly Lewis, 513-983-1118, or Scott Stewart, 513-983-8058, both of Procter & Gamble/
 (WY PG) CO: Weyerhaeuser; Proctor & Gamble ST: Washington, Georgia IN: PAP SU:


JH-SF -- SE003 -- 1678 08/20/92 11:42 EDT
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Publication:PR Newswire
Date:Aug 20, 1992
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