Timber REIT Potlatch Corporation (NYSE: PCH) announced plans in July to spin off its pulp-based manufacturing entity to shareholders. The spin-off, Clearwater Paper Corporation, will be headquartered in Spokane, Wash.
Potlatch’s chairman, president and CEO Michael J. Covey will retain his position while Gordon L. Jones will become president and CEO of Clearwater. Previously, Jones served as president, CEO and director of Blue Ridge Paper Products, Inc.
Covey says that, as two separate publicly traded entities, “both companies will be better positioned to manage and grow their businesses, leverage their distinct competitive strengths, attract and retain key employees and pursue value-creation opportunities such as acquisitions over the long-term.”
Potlatch expects the transaction to be completed in the fourth quarter of 2008.