Weyerhaeuser sheds its Canadian locations

International forest products company Weyerhaeuser Co. has announced it will sell its 16 Canadian building materials centers to Los Angeles-based private equity firm, Platinum Equity. Under the terms of the deal, the centers, which distribute wood products, siding, insulation, rebar and roofing, will operate as a stand-alone company for Platinum. Financial details of the deal have not been disclosed. However, Weyerhaeuser told the press that the net effect on the company's finances would be relatively small. The move is part of the Federal Way, Washington-based company's larger goal to restructure itself by cutting costs and streamlining operations. Weyerhaeuser expects the transaction to close in the second quarter of 2007. The company is also in talks to sell 10 of its US centers to an unidentified buyer. Weyerhaeuser said that it will continue to own and operate its 40 distribution centers in the US, excluding the 10 centers involved in the negotiations. Weyerhaeuser's services include: the production and distribution of building products, cellulose fibers, paper and packaging, and timber. Weyerhaeuser also offers real estate and transportation services. The company has annual sales of $22.6 billion and employs about 54,000 people in 18 countries. Platinum equity is a global acquisition firm that typically works with what the company calls “strategic sellers” who seek to shed non-core assets in order to refocus their business operations. In the steel sector, Platinum owns PNA Group Inc., which is comprised of Feralloy, Delta Steel, and Infra-Metals, as well as ESM Group, which provides secondary metallurgy services to the steel industry.