Weyerhaeuser purchasse 80,800 acres of high-quality timberlands in North and South Carolina from a fund managed by Campbell Global for approximately $265 million. The acquisition is comprised of highly productive timberlands situated in strong coastal markets and strategically located to deliver immediate synergies with existing Weyerhaeuser timber and mill operations.
Additionally, the acquisition is expected to deliver portfolio-leading cash flow and harvest tons per acre within the company’s Southern Timberlands business.
Key attributes include:
> Fee ownership with 89 percent planted pine acreage and strong site productivity delivering attractive long-term timber returns.
> Well-stocked timber inventory with a mature age class producing attractive sawlog mix and average harvest of 6.5 tons per acre (or 520,000 tons) annually over the first 10 years.
> Expected average Adjusted EBITDA of approximately $160 per acre (or $13 million) annually from timber operations over the first 10 years.
> Significant optionality to capture additional upside from real estate and natural climate solutions opportunities.
“This transaction is a great example of our ongoing efforts to enhance our portfolio with high-quality, well-managed timberlands that generate solid returns for our shareholders,” said Devin Stockfish, president and chief executive officer. “These Carolina timberlands are strategically located, well-integrated with our existing operations and offer very attractive timberland attributes, and they will provide strong cash flows for our Southern Timberlands business.”
With this acquisition, Weyerhaeuser will own or manage more than 900,000 acres of timberlands in the Carolinas, and the company also operates four mills, a distribution center and tree nursery and hosts multiple mitigation banks and real estate development projects — employing more than 700 people between the two states. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2022.