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Packaging company MeadWestvaco selling 501K acres of US forestland to Plum Creek for $934M
Reported by: Associated Press
Monday, October 28, 2013 5:30 PM EDT
Packaging company MeadWestvaco Corp. is selling its U.S. forestland to Plum Creek Timber Co. for $934 million.
Seattle-based Plum Creek, a timber real estate investment trust, will pay $74 million in cash and $860 million in a 10-year installment note.
The companies also formed a joint venture involving 109,000 acres near Charleston, S.C. Plum Creek will invest $152 million in the new partnership.
Additionally, MeadWestvaco and Plum Creek will sign a 25-year fiber supply deal for MeadWestvaco's Covington, Va., paperboard mill.
The transactions are expected to close by the end of the year.