PORTLAND, Ore., Dec. 10 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today announced that its Board of Directors has authorized Willamette's
management team to commence negotiations with Georgia-Pacific Corp. (NYSE: GP)
regarding a possible business combination involving Georgia-Pacific's building
products business. There can be no assurances as to when or if a transaction
will be finalized.
Were a transaction to occur, Willamette would enhance its position as one
of North America's leading producers of structural wood panels, composite
panels and lumber, and give it a strong presence in distribution, gypsum and
wood adhesive resins. The Georgia-Pacific building products business had
revenues of approximately $7 billion in 2000.
Duane C. McDougall, president and chief executive officer of Willamette
Industries, said: "We are proceeding with our strategic plans to continue
building value for our shareholders. Any transaction we pursue would be
designed to improve our position in key market segments, broaden and enhance
our product mix and enable us to better serve our customers. We would also
seek to generate significant operating synergies and enhance our long-term
earnings growth. The GP assets appear to meet all of these criteria and they
represent an excellent potential opportunity and fit."
McDougall continued: "As what we believe is the industry's premier
franchise, we have consistently outperformed our competitors in a number of
key financial metrics over the past ten years. We are focused on pursuing
opportunities that help us build on this track record."
Regarding Weyerhaeuser, McDougall said: "On October 10, we publicly
invited them to sit down with our investment bankers in order to get the
information they needed to revise their inadequate $50 offer. They publicly
slammed the door shut on that overture in less than two hours without so much
as a phone call, and we made it clear that we intended to pursue our strategic
plan. That's what we are doing."
McDougall concluded: "A potential transaction with Georgia-Pacific
represents only one of our options for building shareholder value. We are
disclosing the Board's authorization of negotiations with Georgia-Pacific in
accordance with the rules governing tender offers."
Willamette Industries is an integrated forest products company with
105 plants, located in the U.S., France, Ireland and Mexico. The company owns
1.7 million acres of forestland in the U.S. and manages it sustainably to
produce building materials, composite wood panels, fine paper, office paper
products, corrugated packaging and grocery bags.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Any such forward-looking statement made by Willamette with respect to the
Weyerhaeuser tender offer is not entitled to the benefit of the safe harbor
protections of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties and actual
results could differ materially from those projected. Such risks and
uncertainties include, but are not limited to, the effect of general economic
conditions; the level of new housing starts and remodeling activity; the
availability and terms of financing for construction; competitive factors,
including pricing pressures; the cost and availability of wood fiber; the
effect of natural disasters on the Company's timberlands; construction delays;
risk of nonperformance by third parties; and the impact of environmental
regulations and other costs associated with complying with such regulations.
Please refer to Willamette Industries' Securities and Exchange Commission
filings for further information.
SOURCE Willamette Industries, Inc.
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Related links:
http://www.wii.com
Company News On-Call:
http://www.prnewswire.com/comp/971763.html
CONTACT:
Greg Hawley, EVP & CFO, +1-503-273-5640, or
Jackie Lang, Communications Manager, +1-503-721-2769, both of
Willamette Industries, Inc.; or Paul Verbinnen, David Reno or Jim
Barron, all of Citigate Sard Verbinnen, +1-212-687-8080, for
Willamette Industries, Inc.
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