A corrugated packaging factory in Lynchburg could come under new ownership later this year.
Weyerhaeuser is selling its containerboard packaging and recycling business, which includes a Lynchburg plant on Mayflower Drive, to International Paper.
The $6 billion deal will affect 14,300 employees, 175 of them in Lynchburg. A Weyerhaeuser spokesman said the transaction will likely not reduce employment in Lynchburg, but an International Paper official said it’s too early to know for sure.
International Paper offered to buy the packaging and recycling business on March 17. On Monday, Weyerhaeuser announced that the U.S. Department of Justice gave regulatory approval of the sale.
The sale still needs approval in several other countries. Officials with both companies expect the transaction to be complete in the third quarter this year.
Patty Neuhoff, director of communications for International Paper, said the company is attracted to this segment of Weyerhaeuser’s business because it is similar to its current operations.
“We’re currently in the business. We wanted to acquire Weyerhaeuser because they’re very much like us,” she said.
International Paper has two plants in Virginia, one in Richmond and one in Chesapeake.
She said International Paper has barely begun discussions to learn how each individual Weyerhaeuser facility compares with its current operations.
She said it’s not known whether the sale will affect employment at sites like the Lynchburg plant. “There’s no news for any local facilities whatsoever, except we’re delighted to have them as part of our company,” she said.
Frank Mendizabal, spokesman for Weyerhaeuser, said, “International Paper has agreed to buy all of our packaging mills. They bought the whole business. So as far as we know at this point, they’re going to continue operating the business at each location.”
Weyerhaeuser is retaining its forestry and wood products businesses.
Weyerhaeuser stock closed at $64 on the New York Stock Exchange Tuesday, a change of 1.13. International Paper closed at $26.26, an increase of 0.57.
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