Weyerhaeuser Co. announced on Friday, Oct. 10 that it had signed a non-binding letter of intent to sell its Trus Joist Commercial division to Atlas Holdings of Greenwich, Conn. Weyerhaeuser said the deal will enable it to focus on residential framing.
The sale covers four manufacturing plants (in Chino, Calif.; Hillsboro, Ore.; Delaware, Ohio; and Stayton, Ore.) and 13 sales and engineering offices. About 428 employees will be affected. Financial terms weren't disclosed.
"Our goal is to ensure that the Commercial Business is optimized for long-term growth," Carlos Guilherme, iLevel vice president of sales, said in a statement. "After a thorough review of the alternatives, we believe the decision to explore the sale of this business and its assets to Atlas Holdings is in the best interests of our shareholders, employees and customers. At the same time, that outcome would allow Weyerhaeuser to narrow its focus on core strategies in the residential structural frame market."
The deal is expected to close by Dec. 31 pending negotiation of a final agreement and approval by Weyerhaeuser's board of directors.
Weyerhaeuser said the action "is the culmination of a strategic review for the business that started in February 2008. During the review, Weyerhaeuser looked at a variety of options, including continuing to hold and operate all or part of this business to a possible sale or combination."
Atlas Holdings LLC has investments in agribusiness and food, business and industrial services, chemicals, financial services, pulp and paper, specialty steel, and wood products.