Greif, Inc. Subsidiary Closes on the First Phase of Previously Announced Sale of Timberland Assets to Plum Creek Timber Company,
May 24 2005 - 4:25PM
PR Newswire (US)
Greif, Inc. Subsidiary Closes on the First Phase of Previously
Announced Sale of Timberland Assets to Plum Creek Timber Company,
Inc. DELAWARE, Ohio, May 24 /PRNewswire-FirstCall/ -- Soterra LLC,
a subsidiary of Greif, Inc. (NYSE: GEF; GEF.B), has completed the
first phase of its previously announced sale of 56,000 acres of
timberland, timber and associated assets to Plum Creek Timber
Company, Inc. As announced earlier, the total value of the
agreements is approximately $90 million. In the first phase,
involving 35,000 acres of timberland and associated assets in
Florida, Georgia and Alabama, Plum Creek paid approximately $51
million in the form of a promissory note secured by a guarantee of
Bank of America, London branch. Greif intends to monetize the
promissory note and use the proceeds for general corporate
purposes. Yet to be completed is the sale of an additional 21,000
acres of timberland and associated assets located in Florida. That
sale is expected to occur in several installments during Greif's
2006 fiscal year, and will include the remainder of Soterra's
Florida assets. At this time, the company anticipates that the
proceeds of those transactions will be used to acquire timber
properties close to existing Soterra holdings. Soterra LLC now owns
and actively manages about 246,000 acres of timber properties in
Alabama, Arkansas, Florida and Louisiana, and owns about 35,000
acres in Canada. Greif, Inc. is the world leader in industrial
packaging products and services. The Company provides extensive
experience in steel, plastic, fibre, corrugated and multiwall
containers and protective packaging for a wide range of industries.
Greif also produces containerboard and manages timber properties in
North America. Greif is strategically positioned in more than 40
countries to serve global as well as regional customers. Additional
information is on the Company's Web site at http://www.greif.com/ .
DATASOURCE: Greif, Inc. CONTACT: Deb Strohmaier, APR, Director,
Communications of Greif, Inc., +1-740-549-6074, or Web site:
http://www.greif.com/
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