Potlatch (PCH) Approves Spin-Off of Pulp-Based Businesses

July 17, 2008 4:44 PM EDT
Potlatch Corporation (NYSE: PCH) has unanimously approved the Company’s previously announced plan to pursue a tax-free spin-off of its pulp-based businesses into a publicly-traded company called Clearwater Paper Corporation. The planned spin-off is subject to final Board approval based on regulatory, market and other conditions.

A spin-off will create two stand-alone, publicly-traded entities: a timber REIT, which is a verified forest practices leader with 1.7 million acres of forestland in Arkansas, Idaho, Minnesota and Wisconsin; and a pulp-based manufacturing company that will include Potlatch’s Consumer Products facilities in Lewiston, Idaho, Las Vegas, Nevada, and Elwood, Illinois, and its Pulp & Paperboard facilities in Lewiston, Idaho, and Cypress Bend, Arkansas. The businesses to be spun-off had revenues of approximately $1.2 billion in 2007.

After the completion of the spin-off, Potlatch will continue to trade on the New York Stock Exchange under the ticker “PCH,” and shares of Clearwater Paper are expected be listed on the New York Stock Exchange. Michael J. Covey will remain Chairman, President and CEO of Potlatch. As previously announced, Gordon L. Jones will be President and CEO of Clearwater Paper. Potlatch will remain headquartered in Spokane, Washington, and Clearwater Paper’s headquarters will be based in the Spokane area at a new office location that has not yet been determined.[SM]

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