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WEYERHAEUSER STRENGTHENS THREE CORE BUSINESSES WITH COMPLETION OF ACQUISITION OF PROCTER & GAMBLE MILLS, TIMBERLANDS

 TACOMA, Wash., Nov. 30 ~PRNewswire~ -- Weyerhaeuser Co. (NYSE: WY) said that today it expanded its core businesses with operations that will have immediate impact on earnings and cash flow when it completed an agreement to purchase two pulp mills, three sawmills and two timberlands operations from Procter & Gamble (NYSE: PG).
 Announced Aug. 20, the $600-million purchase, the largest in company history in current dollar value, makes Weyerhaeuser the world's largest producer of market pulp. Pulp is a processed product used to make a wide variety of paper, packaging and consumer products. The pulp mills are now part of a Weyerhaeuser pulp supply system that includes eight mills and a worldwide customer base.
 The final purchase documents were signed by Weyerhaeuser and Procter & Gamble officials at Procter & Gamble headquarters in Cincinnati. Carl Geist, Pulp Division vice president, represented Weyerhaeuser. Procter & Gamble's Canadian operations were purchased by Weyerhaeuser Canada Ltd.
 The purchase strengthens three of Weyerhaeuser's core businesses. 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.
 When the announcement of the purchase agreement was made in August, Weyerhaeuser Co. President Jack Creighton called it "a significant step toward improving our ability to be the best forest products company in the world." He called the purchase agreement "a great fit and great opportunity that will provide immediate earnings and cash flow and long- term benefits to Weyerhaeuser."
 Creighton said of the completion of the agreement today, "Throughout this transition process, the more we learned about the employees and the assets, the more we became convinced that the fit was perfect. These top-quality employees and top-quality operations will make us a more profitable and better company. We welcome these new employees and new communities to the Weyerhaeuser family and look forward to a long and rewarding relationship for all.
 "We called this project 'Step-Out' because it was the first major strategic opportunity since our refocusing effort. We are growing strategically in core businesses with a clear focus on customers," Creighton said.
 "Weyerhaeuser's reputation as a responsible, valued corporate citizen has to be earned by our people every day, in every community where we operate. We intend to be a good neighbor. We want our employees to be proud of the company's role in the community. Today we start in Flint River, Barnesville, Grande Prairie and Grande Cache," Creighton said.
 Facilities purchased by Weyerhaeuser are a fluff pulp mill in Oglethorpe, Ga., a sawmill in Barnesville, Ga., and 175,000 acres of Georgia timberland. Also included are a softwood kraft pulp mill in Grande Prairie, Alberta, and sawmills in Grande Prairie and Grande Cache, Alberta. Approximately 1,500 people are employed at the operations.
 The completion of the agreement was contingent upon approval of the transfer of the forest management license for 2.8 million acres of timberland by the Alberta provincial government and of environmental permits. Those transfers were approved in the past several weeks.
 All Procter & Gamble employees at the facilities were offered employment with Weyerhaeuser, and all of the new operations will be managed by former Procter & Gamble employees. The Barnesville sawmill will be operated by Weyerhaeuser Co.'s Southern Lumber Division, based in Hot Springs, Ark., and will report to John Selig.
 John Crowe will manage the Flint River, Ga., operations, and Mark Starnes will manage the Grande Prairie operations.
 Weyerhaeuser, headquartered in Tacoma, Wash., is the largest private owner of softwood forests in the world and is one of North America's largest producers of pulp, paper, packaging, lumber and other forest products. Sales for 1991 totaled $8.7 billion. For the first three quarters of 1992, the company reported net earnings of $286.7 million on sales of nearly $6.9 billion.
 -0- 11~30~92
 ~CONTACT: Mike Walters or Mike Bickford of Weyerhaeuser, 206-924-3423~
 (WY PG)


CO: Weyerhaeuser Co.; Weyerhaeuser Canada Ltd.; Procter & Gamble ST: Washington, Alberta, Ohio, Georgia, Arkansas IN: PAP SU: TNM PER

SW-JH -- SE007 -- 1951 11~30~92 13:19 EST
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Publication:PR Newswire
Date:Nov 30, 1992
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