Weyerhaeuser Announces Agreement to Sell 145,000 Acres of Timberlands in Washington's North Cascades
1 May 2021
Weyerhaeuser Company announced the completion of its acquisition of 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately $149 million earlier this week. Separately, the company announced an agreement to sell 145,000 acres of timberlands in the North Cascades region of Washington to Hampton Resources for $266 million. The company expects to recognize a gain on the sale and anticipates no tax liability in conjunction with this transaction.
The Washington disposition is largely comprised of high-elevation terrain in the North Cascades range, with approximately 25 percent of the acres located in Chelan County on the east side of the mountains. Weyerhaeuser acquired the property through the acquisition of Longview Timber in 2013. It primarily supplies Hampton's nearby lumber mill in Darrington, Wash., and does not supply Weyerhaeuser's internal mills or strategic export customers. The property also has the highest operating costs and lowest site productivity and Douglas-fir mix in the company's western portfolio, and it is not expected to materially contribute to near-term or future Adjusted EBITDA.
"These transactions exemplify our ongoing effort to strategically optimize and upgrade our timberland portfolio," said Devin W. Stockfish, president and chief executive officer. "Our Alabama acquisition will grow our near-term and long-term cash flow, and the Washington sale completes our targeted large-scale divestitures of non-strategic acreage in the West. We will continue to seek prudent opportunities to enhance our portfolio with high-quality, well-managed timberlands that will drive long-term value for shareholders."
Weyerhaeuser owns or manages nearly 1.3 million acres and also operates two mills, two nurseries and several other sites in Washington, including its company headquarters in Seattle. The Washington disposition is subject to customary closing conditions and is expected to close in the third quarter of 2021.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
This news release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, with respect to the company's expectations concerning the future occurrence, timing, tax and financial implications of its disposition of certain of its Washington timberlands, as well as the expected financial contributions and economic results of the closing of its acquisition of certain Alabama timberlands and future portfolio enhancement opportunities. Forward-looking statements may be identified by our use of certain words in such statements, including without limitation words such as "anticipates," "expect," "future," "long-term," "near-term," "opportunities," "will," and similar words, terms and phrases using such terms and words. We may reference expected performance through, or events to occur by or at, a future date, and such references may also constitute forward-looking statements. All forward-looking statements speak only as of the date hereof, are based on current expectations and involve and are subject to a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in our 2020 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC. In addition, Weyerhaeuser may not be able to complete the transaction within the stated time period, or at all, because of a number of factors, including without limitation: the occurrence of any event, change or other circumstances that could give rise to a termination of the transaction under the terms of the purchase and sale agreement governing the transaction, or the failure to satisfy other closing conditions. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects. The company undertakes no obligation to update any of these forward-looking statements after the date of this news release.
For more information contact:
Analysts – Beth Baum, 206-539-3907
Media – Nancy Thompson, 919-861-0342