Update: Fibre sale 'good news for the community,' CEO says
Monday, February 5, 2007 3:55 PM PST
By Evan Caldwell
Printable version
E-mail this articleLongview Fibre Co. President and CEO R.H. "Rick" Wollenberg said this afternoon that the $2.15 billion deal to sell the company to a Canadian firm is "good news for the community," and the prospective new owners say they will continue to operate the Longview pulp and paper mill.
"We are quiet comfortable there is a business model here that we can continue," said Reid Carter, a managing partner for Toronto-based Brookfield Asset Management. "The mill was in better shape than we expected."
In a joint interview at The Daily News, Brookfield officials said they would split the manufacturing operations from the timberlands and turn both segments private. Carter would not discuss future employment levels, citing a need for further evaluation.
Fibre owns about 600,000 acres of timberland in the Pacific Northwest and pulp and paper manufacturing facilities across the nation, including Longview.
Brookfield plans to leave much of the current management in place, Carter said. Brookfield owns several other pulp and paper mills throughout the North East and Eastern Canada.
After months of speculation over the company's future, Wollenberg, the third generation of his family to run the company, seemed relieved that a decision has been made. He nearly broke down several times during the interview.
"We looked at all the alternatives, including what we could do ourselves, and we felt that a cash offer today was really truly what was best for our shareholders," Wollenberg said. " ... At the end of the day you hope that you see the shareholders get the best deal and at the same time the community and employees get the best deal."
Shareholders still need to approve the sale, which could take place in a matter of weeks.
The sale severs longtime ties between the community and the 80-year-old company, which was one of the founding businesses in Longview and has employed thousands during its history.
Fibre employs about 1,700 workers, including about 1,200 hourly union workers.
See Tuesday's Daily News for the full story.
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