Carter Holt Harvey to acquire Weyerhaeuser Aust
12 May 2008
Embargoed until 9am Australian EST, 12 May 2008
Carter Holt Harvey to acquire Weyerhaeuser Australia
Carter Holt Harvey (CHH), a subsidiary of Rank Group Limited, has agreed to acquire the timber manufacturing operations and timber distribution business of the Weyerhaeuser Australian Group, including the interest of Green Triangle Forest Products (GTFP). The businesses to be acquired include:
• Weyerhaeuser Australia Pty Ltd (WAPL) - the Caboolture (QLD) sawmill, the Tumut (NSW) sawmill, with the associated Gilmore remanufacturing operation;
• Green Triangle Forest Products (GTFP) manufacturing – the Lakeside sawmill and the Pine Mouldings Operation, both located in Mt Gambier, the Dartmoor (VIC) sawmill, and the export chip business operated out of Portland Victoria.
• Pine Solutions Australia (PSA) – the selling and distribution operations, located in Narangba (QLD), Berkeley Vale (NSW), Dandenong (VIC) and Adelaide (SA), and the Gordon (NSW) office;
The potential transaction does not include any of the timberland assets owned in joint venture by Weyerhaeuser and Global Forest Partners.
The parties have signed a non-binding letter of intent relating to the transaction. The transaction is subject to regulatory approvals by the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB) and to customary due diligence. CHH has lodged an application with both bodies seeking approval for the transaction.
In 2007, a party approached CHH expressing interest in acquiring its Building Supplies business, which operates in both Australia and New Zealand. In response to this approach CHH conducted a strategic review of the Building Supplies business which included seeking expressions of interest from a number of parties in relation to all or part of the business.
During the course of that review the opportunity to acquire the Weyerhaeuser Australia businesses presented itself and CHH has determined that the combination of the Weyerhaeuser Australia businesses with its own CHH Woodproducts Australia business represents the best immediate strategic step in improving the combined business.